How does UNDP do business
UNDP Procurement is based on competitive bidding. Depending on the type, complexity, size and value of the project and its procurement elements, commonly used methods of solicitation include:
Request for Quotation (RFQ)
An RFQ is an informal invitation to submit a quotation, usually for goods/services/civil works at a value between US$2,500 and $100,000.
Prices, and other commercial terms and conditions are requested and award is made to the lowest priced technically acceptable offer.
Invitation to Bid (ITB)
An ITB is a formal invitation to submit a bid, usually associated with requirements that are clearly and concisely defined, with an estimated procurement value of US$100,000 or more. Normally price is the sole determinant in making an award. Where all technical criteria are met, award is made to the lowest bidder.
Request for Proposal (RFP)
An RFP is a formal request to submit a proposal, usually associated with requirements for services, which cannot be clearly or concisely defined, with an estimated procurement value of US$ 100,000 or more. Price is only one of several factors comprising the evaluation criteria. Award is made to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents and is evaluated to be the lowest cost to UNDP.
In some cases, exceptions to competition are being made and direct contracting is used. This usually happens when a Long-Term Agreement (LTA) is in place, either globally (IAPSO or HQ) or locally (at country office level).
For values less than US$2,500, country offices may engage in local shopping.
As per UNDP’s Financial Regulations and Rules, the following general principles must be given due consideration while executing procurement on behalf of the organization: Best Value for Money; Fairness, Integrity, Transparency; Effective International Competition; and the Interest of UNDP
Best Value for Money - By and large the core governing principle of UNDP is to obtain the best value for money. In the context of the procurement process, obtaining “best value for money” means selection of the offer, which presents the optimum combination of life-cycle costs and benefits, which meet the Business Unit’s needs. Best value for money should not be equated with the lowest initial price option rather requiring an integrated assessment of technical, organizational and pricing factors in light of their relative importance (i.e., reliability, quality, experience, reputation, past performance, cost/fee realism and reasonableness). The Business Unit’s parameters can also include social, environmental and other strategic objectives defined in the procurement plan. The principle of best value for money is applied at the award stage to select the offer that effectively meets the stated requirement. To ensure that best value for money is obtained, the process of soliciting offers and selecting a Contractor should: •maximize competition; •minimize the complexity of the solicitation, evaluation, and the selection process; •ensure impartial and comprehensive evaluation of solicited offers; and •ensure selection of the Contractor whose offer has the highest degree of realism and whose performance is expected to best meet the Business Unit’s specifications, statement of works or terms of reference.
Fairness, Integrity and Transparency - As competition is the basis for efficient, impartial and transparent procurement; Business Units are therefore, responsible for protecting the integrity of the procurement process and maintaining fairness in UNDP’s treatment of all Offerors. Sound procurement (i.e., openness of the process; probity; complete and accurate records; accountability; confidentiality) establishes and then maintains rules and procedures that are attainable and unambiguous.
Effective Competition - The objective of UNDP’s competitive processes is to provide all eligible prospective Offerors with timely and adequate notification of UNDP’s requirements and an equal opportunity to tender for the required goods, civil works and services. Business Units should ensure that restrictions are not placed on the competitive processes limiting the pool of potential Offerors, as UNDP does not accept procurement awarded to exclusive Contractors or countries, unless otherwise explicitly mentioned in a Donor agreement. However, any such restrictive procurement provisions within an agreement must obtain prior approval of the Chief Procurement Officer.
Interest to UNDP - In practice, the specific procurement rules and procedures established for the implementation of a programme are contingent upon the individual circumstances of the particular case; however four considerations consistently guide the UNDP’s interest for the acquisition of inputs:
- the need for economy and efficiency in the implementation of the programme, including the procurement of goods, civil works and services involved;
- the access to procurement opportunities for all interested and qualified Offerors worldwide, except where other criteria mandated by the Security Council or General Assembly prevails;
- giving all eligible Offerors the same information and equal opportunity to compete in providing goods, civil works or services;
- and the importance of transparency in the procurement process.
UNDP procurement guidelines categorically prohibit the acceptance of any gifts and favours from vendors and partners by UNDP staff members.
UNDP staff will not accept any gift, honour, decoration, remuneration, favour or economic benefit from any source external to their organization; this also includes Governments as well as commercial firms and other entities.
This prohibition on receiving gifts and favours extends beyond UNDP policy and is also embodied and institutionalized in the Code of Conduct established by the International Civil Service Commission of the United Nations.
In 2011, only one procurement exceeding $100,000 was made by UNDP Belize. This comprised purchase of Information Technology equipment from Advizing IT under Long Term Agreement established on July 30, 2010 (Ref OIST/LTA/2010/013).
All 2012 procurement notices for contracts over $100,000:
Current Procurement Notices: Belize Search
List of contract awards
|Global Fund to Fight AIDS, Tuberculosis and Malaria Round 9: Accelerating the Pace: Reaching Marginalized and Vulnerable Populations with Critical Services||Becton Dickenson||$95,645|
|Global Fund to Fight AIDS, Tuberculosis and Malaria Round 9: Accelerating the Pace: Reaching Marginalized and Vulnerable Populations with Critical Services||AMEX Export||$203,748|
|Enhancing Belize's Resilience to Adapt to the Effects of Climate Change||GEOMEDIA s.r.o.||$234,500|