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Presented by
Niels Ramm (UNGM) and Susan Struck (HLCM PN)Athens, November 2008
DOING BUSINESS WITH THE UNITED NATIONS (UN)
Overview of the United Nations
UN Procurement Statistics
How to Identify Business Opportunities
General UN Procurement Procedures
How to do Business with theUnited Nations (UN)
Global Compact & Ethics
Overview
The United Nations is made up of a variety of organizational entities (agencies, organizations, commissions, programmes, funds, etc).
Each entity has a distinct and separate mandate (covering the political, economic, social, scientific and technical fields).
Le Nazioni Unite nel mondoLe Nazioni Unite nel mondo
UNAIDS
OPCW
Copenhagen
UNOPSUNDP/PSOUNICEF Supply DivisionUNFPA Procurement Unit
UNEP
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
Overview
Total UN Procurement of Goods and Services (UN System) 2007
0
2000
4000
6000
8000
10000
12000
2002 2003 2004 2005 2006 2007
Year
US
D M
illio
ns
Goods Services
4,6% more services than
goods
Ten Major Countries of Supply to the UN System 2007
0
100
200
300
400
500
600
700
800
US
D M
illio
ns
Major Items procured by the UN System
Goods
• Food
• Pharmaceutical Supplies
• Vehicles
• Computers and Software
• Shelter and Housing
• Telecommunications Equipment
• Laboratory Equipment
• Building Materials
Services
• Security Services
• Outsourced Personnel Services
• Engineering Services
•Construction
•Corporate Services
•Freight Services
•Printing Services and Equipment Rental
•Consultancy Services
•Telecommunication Services
1. UNDP 2424
2. UN Sec 1904
3. WFP 1808
4. UNOPS 659
5. PAHO 294
6. UNESCO 231
7. UNFPA 224
8. UNRWA 180
Volume of Procurement in 2007 of the 15 Principal Agencies
9. IAEA 131
10. UNHCR 128
11. UNDP/IAPSO 106
12. FAO 85
13. ILO 70
14. UNOG 69
15. UNIDO 55
Procurement Goods and Services from Greece by Agency 2007, USD thousand
UNDP 1.63
WFP 0.58
UNON 0.25
UNOPS 0.09
UNV 0.06
UNOG 0.04
UNESCO 0.03
UNFPA 0.03
UNRWA 0.03
UN Sec 0.02
FAO 0.02
Goods
• Power cables• Agricultural Equipment• Electrical Equipment• Water Storage Tanks
Services • Leasing and Renting
Services• Environmental Management• Trade Facilitation
Market knowledge― UN structure, procedure and value
Export experience / references― Global and/or local operation
Languages― Employees, documents
Competitive prices – Quality― International competition – best value
Are you ready to supply to the UN (1/2)?
Are you ready to supply to the UN (2/2)?
Networks / partner― Country knowledge, after-sales services
Capacities― Finance, personnel
Flexibility and accuracy― Operational tempo
Persistence, endurance, patience
The Annual Statistical Report
Web-Based Information
The General Business Guide (GBG) Practical Tips — Doing Business with the UN
Towards one single commercial and procurement portal: UN Global Market Place (UNGM)
Additional information: www.ungm.org
Procurement notices
Value-Added Service: Receive relevant procurement notices directly in your Inbox, USD250 annually
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 Organizations, fields of activity, contact persons, procurement activities and requirements and registration procedures
Available from www.ungm.org
Both publications are updated on an annual basis
Step-by-Step Towards Success
Extensive market research
― Planning acquisition, contract award, UN information
Identification of relevant UN Organization
― Match capacity and requirements
Registration — United Nations Global Marketplace
― Mandatory for majority of UN agencies
Thorough information about procurement
― Principles, procedures
Obtain systematic / regular information about current procurement activities / opportunities
― Keep yourself up-to-date
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
Competitive suppliers of previous procurement
― Past performance
Suppliers of the required goods or services, found on the UN Global Marketplace
― Codification
Through calls for Expression of Interest (EOI)
― Notices
Search of World Wide Web
Trade Missions, Chambers of Commerce
Exchange with other UN Agencies
How are vendors shortlist compiled? (Sourcing)
Supplier Criteria
Minimum of 3 years experience in relevant business line Export Experience (where applicable) Certified financial reports for the past 3 years
(Annual turnover + annual profit + company’s own capital) References, 3 recent contracts, goods/services supplied, dates and client
details Quality Certification
General Terms and Conditions Supplier Code of Conduct
the value of the procurement
the nature of the goods and services to be procured
critical dates for delivery
How is the procurement method decided?
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/Award for types of solicitation
** Thresholds vary
Expression of Interest (EOI)Written communication by a supplier to provide information about its products, resources, qualifications and experience
Request for Quotation (RFQ)Less formal solicitation, lower value, standard specifications, readily available on the market
Invitation to Bid (ITB)Formal solicitation, lowest evaluated price, compliant and technically compliant
Request for Proposal (RFP)Formal solicitation, requirements possibly met in a variety of ways, overall best solution will win the award (Combining technical solution and price considerations) -- not necessarily the lowest price
Types of Solicitation
Long Term Agreement (LTA)/Frame Agreement A long-term agreement based on ITB or RFP process 2-4 years periodPotentially more than one LTA for same goods/serviceAdvantage: Shortens delivery time by shortening process
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
Types of Solicitation
Cover both the procurement of goods and the contracting of services.
Most provisions are common within the UN procurement system, however some provisions may vary depending on individual agency requirements.
Familiarise yourself with the UN Terms & Conditions (UNGCC).
Common General Terms & Conditions
Business should:
1. Support and respect the protection of internationally proclaimed human rights (policies, basic working conditions, right to health/privacy, workplace health and safety)
2. Make sure that they are not complicit in human rights abuses (know who your partners are, policies apply to subsidiaries)
3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining (allow workers to form trade unions)
4. The elimination of all forms of forced and compulsory labor (treat migrant workers fairly, have contracts for all workers)
5. The effective abolition of child labor (age verification, programs for children of workers)
6. The elimination of discrimination in respect of employment and occupation (policies, zero tolerance)
7. Business should support a precautionary approach to environmental challenges (policies)
8. Undertake initiatives to promote greater environmental responsibility (reduce energy consumption)
9. Encourage the development and diffusion of environmentally friendly technologies
10. Business should work against all forms of corruption, including extortion and bribery (zero tolerance, anti-corruption policy, political donations are published)
www.unglobalcompact.org
The UN Global Compact — Ten Principles
The UN Global Compact — Reasons to Participate
20%
34%
34%
40%
46%
52%
53%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Improve market access
Establish links with the UN
Acquire practical know-how
Increased awareness of Corporate SocialResponsibility
Improve public relations
Address humanitarian concerns
Networking opportunities
Increase trust in company
We continue to strive for Integrity, Fairness and Transparency
Financial, personal or professional interest with suppliers must be declared and precludes any participation in the procurement process
Zero tolerance . . .
Disputes? Contact Head of Procurement at Organization
Ethics in General
Christmas gift
Exclusive dinner with
partner
Expensive gifts for hobby
Amount of
money
Close Co-operationCourtesy
Business Dinner
Free Services
Holiday trip
Corruption
Right to get money
Nice business
travel