Presented by Niels Ramm United Nations Office for Project Services (UNOPS)

1. DOING BUSINESS WITH THE UNITED NATIONS (UN) Presented by Niels Ramm United Nations Office for Project Services (UNOPS) Prague, 21 November 2011

2. UN Procurement Statistics UN System of Organisations HLCM Procurement Network Finding Information – UNGM How to do Business with theUnited Nations (UN) General UN Procurement Procedures

3. High Level Committee of Management’s Procurement Network The Procurement Network - Heads and Directors of 40 UN Agencies. Focuses on: • Increased Access for Suppliers • Business seminars • Special focus on suppliers from developing countries • Harmonisation • Guidelines for Harmonized UN Procurement at the Country Level • Common Financial Regulations and Rules and General Terms & Conditions • Sustainable Procurement • Guidelines on IT, Furniture, Cleaning Products, Catering, Vehicles etc. • Sustainable Procurement Guide • Professional Development • Recognition of procurement as strategic function • Professional Certification • Knowledge Sharing • Vendor Management (UNGM) • UNGM = Common UN Procurement Portal • Vendor Eligibility • UNCCS (material codes) • Projects on Collaborative Procurement

4. Statistics (UN procurement system)

5. Total UN procurement of goods and services (UN System) 2006-2010 USD Million 14,544 13,797 13,594 10,113 9,404

6. Volume of procurement of the 10 principal UN Agencies Total volume 2010: USD 14.5 billion USD Million

7. 10 major countries of supply to the UN System 2010 USD Million Total UN 2010 procurement volume: $14.5 Bn No. of supplier countries: 191 Procured from USA: 10% Procured from France: 3%

8. 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 & tourism • Leasing & rental services • Computer & IT services • Financial & auditing services • Management services & consultancy

9. UN procurement from Czech Republic Buying from Czech Republic (USD1000) 2010 • UN/PD 5,176.46 • IAEA 4,025.94 • FAO 1,638.33 • UNDP 827.02 • UNICEF 369.20 • UNOPS 157.03 Thousand USD

10. Major goods and services supplied by Czech Republic Services • Training Services • HIV Prevention Study Goods                                                  • Radiotherapy Equipment • Motor Vehicles • Tyres • Software

11. UN System of Organisations

12. Overview • The United Nations is not a single organisation but is in fact made up of a variety of organisationalentities (agencies, organisations, commissions, programmes, funds, etc). • A market in itself where each organisation has a different function and it’s own characteristics 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 procurement department and processes and procedures may differ.

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14. Le Nazioni Unite nel mondo Budapest UNHCR OPCW UNEP UNAIDS Copenhagen UNOPS HQ - UNGMUNDP/Procurement Support OfficeUNICEF Supply DivisionUNFPA Procurement Unit

15. Overview • EACH ORGANISATION . . . • has its own special requirements for goods and services • may conduct its own procurement activities • follows, in general, common principles for procurement rules and regulations • constitutes a separate and distinct customer/partner

16. Finding Information

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

18. Business Information • 1. 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 • 2. The General Business Guide • Lists all UN Organisations, fields of activity, contact persons, procurement activities and requirements and registration procedures • Available from www.ungm.org

19. Registering as a Potential Supplier

20. The United Nations 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 •  the UNGM therefore provides an excellent springboard to introduce your goods and services to many UN organisations, countries and regions by only completing one registration form.

21. Procurement & the United Nations ultimate goals • The UN is committed to sustainable and equitable development • World leaders and the UN have formed a new 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

22. First steps: 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 • The UN supplier Code of Conduct spells out the principles that should inspire the business practice of suppliers The UN supplier Code of Conduct provide 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

23. Procurement from Global Compact members

24. UN Procurement Procedures

25. Common Guidelines for UN Procurement system • Procurement activities of the UN system are based on the following principles: • Advancing the interests of the organisation • Obtaining value for money • Ensuring probity through inter alia, fairness, integrity, transparency and effective competition • Accountability for outcomes • These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract

26. 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

27. Types of solicitation • 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

28. Thresholds/Types of solicitation Up to 30,000 USD* - Informal, simplified acquisition procedure- Requests for Quotation (RFQ)- Lowest priced, technically acceptable bidder or best value bidder (evaluated). Above 30,000 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 - Review and Recommendation by Contract Committees * Thresholds may vary

29. Other steps in the procurement process Expression of Interest Used as part of market researchIdentifying and prequalifying suppliers Keep abreast with new developmentsDoes not necessarily result in procurement PrequalificationCan 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 Very specialised for pharmaceuticals Post Qualification/Preshipment InspectionUsed as part of testing pre-contract stageEnsuring equipment works under special conditions

30. In addition . . . • Long Term Agreement (LTA)/Frame Agreement Based on ITB or RFP process 2-4 years periodPotentially more than one LTA for same goods/service • Single tendering exercise reduces 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

31. 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 • Trade Missions, Chambers of Commerce • Exchange with other UN Agencies

32. Evaluation Criteria • Acceptance of UN payment terms, terms & conditions, contract template, liability, legal capacity, etc. • Technical Requirements • Delivery Terms (INCOTERMS 2000) • Delivery Time • RecognisedInternational/National Standards • Supporting Documentation • Proven Production Capacity & Financial Strength • Warranty Conditions • Appropriate After-sales Service • Previous Contract References • Price

33. Evaluation Criteria for Requests for Proposal (RFP) • Proposals are 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 70%-80% of the overall score, and • 20%-30% will given to the financial proposal

34. Evaluation Criteria for Invitations to Bid (ITB) • Proposals are always evaluated according to the principle of … • “lowest price • meeting technical specifications • and stated requirements”

35. Thank you & good luck!