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DOING BUSINESS WITH
THE UNITED NATIONS
(UN)
Kerry Kassow, High Level Committee of Management’s
Procurement Network (HLCM P...
Agenda
 HLCM Procurement Network
 UN Procurement & Statistics
 UN System of Organisations
 Supplying the UN
 Finding ...
High Level Committee of Management’s
Procurement Network
The Procurement Network - Heads and Directors of 36 Agencies. Foc...
UN Procurement & Statistics
Procurement & United Nations ultimate
goals
 The UN is committed to sustainable and
equitable development
 World leaders...
Procurement & United Nations ultimate
goals
Procurement & United Nations ultimate
goals
 The UN is committed to sustainable and
equitable development
 World leaders...
The UN Global Compact and the
Supplier Code of Conduct
 The UN strongly encourages all vendors to actively participate
in...
Total UN procurement of goods and
services 2009-2013
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2009 201...
Procurement volume of the 10 principal UN
agencies 2013
0
500
1000
1500
2000
2500
3000
3500
2012
2013
2,997
2,741 2,629
2,...
10 major countries of supply to the UN
System 2013
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1,101
128
449
650
253
5...
Major goods procured by the UN System
Goods
• Food & Nutrition
• Pharmaceuticals & vaccines
• Motor vehicles & parts
• Tex...
Major services procured by the UN System
Services
• Transport services
• Construction, engineering and
architectural servi...
UN procurement from Israel
0
10
20
30
40
50
60
2010 2011 2012 2013
Services
Goods
39.84
50.08
Buying from Israel
(USD Mill...
Major goods and services supplied by Israel
Goods
 Medical & Laboratory
Equipment
 Food Supplies
 Vehicles & Spare Part...
UN System of Organisations
UN System of Organisations
 The United Nations is not a single organisation but is in fact
made up of a variety of organi...
Supplying the UN
Are you ready to supply the UN?
 Market knowledge (UN structure and culture)
 Suitable products/services
 Export experi...
Step-by-step towards success
 Market research, identify relevant UN
Organisations, register
 Understand the procurement ...
Finding Information
Web-based information
UN Procurement’s single commercial and procurement portal:
United Nations Global Marketplace (UNGM) ...
Business information
 The Annual Statistical Report
– UN procurement by country
– UN Agency procurement by country, commo...
Register as a Potential Supplier
www.ungm.org
The UN Global Marketplace (UNGM)
 Register - free of charge
 Business opportunities
 Subscribe to Tender Alert Service
...
UN Procurement Procedures
Common Guidelines for UN Procurement
Procurement activities of the UN system are based on the
following:
 The objectives ...
Common General Terms & Conditions
 Cover both the procurement of goods and the
contracting of services
 Most provisions ...
How is the procurement method decided?
 the value of the procurement
 the nature of the goods and services to be procure...
Types of solicitation
Expression of Interest (EOI) - interested suppliers
requested to provide information on their produc...
Types of solicitation
Expression of Interest (EOI) - interested suppliers
requested to provide information on their produc...
Types of solicitation
Expression of Interest (EOI) - interested suppliers
requested to provide information on their produc...
Types of solicitation
Expression of Interest (EOI) - interested suppliers
requested to provide information on their produc...
In summary
Up to 30,000 USD*
- Informal, simplified acquisition procedure
- Requests for Quotation (RFQ)
- Minimum 3 respo...
In addition . . .
Long Term Agreement/Frame Agreement
Based on ITB or RFP process
2-4 years period
Potentially more than o...
Evaluation Criteria
 Acceptance of UN payment terms, terms &
conditions etc.
 Technical Requirements
 Delivery Terms & ...
How are vendors identified?
 Competitive suppliers of previous procurement
- Past performance
 Suppliers of the required...
Practical Tips
General
 Always respond to bid invitations – if you cannot submit
an offer, inform accordingly
Bid Prepara...
Practical Tips
 Alternative proposal may be provided, in addition to
what is being asked for
 Submit bid, catalogues etc...
Thank you!
Contact: kerry.kassow@undp.org
Doing business with the united nations january 2015   israel
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Doing business with the united nations january 2015 israel

  1. 1. DOING BUSINESS WITH THE UNITED NATIONS (UN) Kerry Kassow, High Level Committee of Management’s Procurement Network (HLCM PN)
  2. 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. 3. High Level Committee of Management’s Procurement Network The Procurement Network - Heads and Directors of 36 Agencies. Focuses on: Strategic Vendor Management • Vendor related matters • Supplier outreach UN Global Marketplace (UNGM) • Common UN Procurement Portal Professional Development • Recognition of procurement as strategic function • Professional Certification • Knowledge Sharing Harmonisation • Supporting harmonised UN Procurement Sustainable Procurement • Guidelines on IT, Furniture, Cleaning Products, Catering, Vehicles etc. • Sustainable Procurement Guide • Advisory Services
  4. 4. UN Procurement & Statistics
  5. 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. 6. Procurement & United Nations ultimate goals
  7. 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. 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 The UN 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 www.un.org/depts/ptd/code_of_conduct
  9. 9. Total UN procurement of goods and services 2009-2013 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2009 2010 2011 2012 2013 7,403 7,469 7,210 8,564 8,450 6,394 7,075 7,066 6,808 7,634 Goods Services USD Million 15.37 14.2714.5413.79 16.08
  10. 10. Procurement volume of the 10 principal UN agencies 2013 0 500 1000 1500 2000 2500 3000 3500 2012 2013 2,997 2,741 2,629 2,477 953 772 749 585 366 289 USD Million
  11. 11. 10 major countries of supply to the UN System 2013 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1,101 128 449 650 253 50 138 139 244 307 569 953 268 50 299 500 364 370 250 86 Goods Services USD Million
  12. 12. Major goods 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 • Petroleum & fuel products • Computer & IT equipment, incl. software • Books, paper, office stationery & supplies • Furniture
  13. 13. Major services procured by the UN System 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
  14. 14. UN procurement from Israel 0 10 20 30 40 50 60 2010 2011 2012 2013 Services Goods 39.84 50.08 Buying from Israel (USD Million) 2013  UNICEF 10.25  UN/PD 10.09  UNRWA 7.02  UNON 5.19  WFP 4.69  UNDP 3.91 USD Million 44.98 54.14
  15. 15. Major goods and services supplied by Israel Goods  Medical & Laboratory Equipment  Food Supplies  Vehicles & Spare Parts  Fuel  IT & Telecommunication Equipment  Water & Sanitation Equipment Services  Security  Printing & Publishing  Community & Social Services  Administration  Building/Facility - Construction & Maintenance  Telecommuncations
  16. 16. UN System of Organisations
  17. 17. 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 different function, its 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 slightly
  18. 18. Supplying the UN
  19. 19. 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
  20. 20. Step-by-step towards success  Market research, identify relevant UN Organisations, register  Understand the procurement practices, seek opportunities  Bid according to tender documents, observe norms and standards, seek clarification  Performance
  21. 21. Finding Information
  22. 22. Web-based information UN Procurement’s single commercial and procurement portal: United Nations Global Marketplace (UNGM) www.ungm.org
  23. 23. 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
  24. 24. Register as a Potential Supplier www.ungm.org
  25. 25. The UN Global Marketplace (UNGM)  Register - free of charge  Business opportunities  Subscribe to Tender Alert Service  Help? registry@ungm.org
  26. 26. UN Procurement Procedures
  27. 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. 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. 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. 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 (e.g. < USD 30,000*) Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid (e.g. > USD 30,000) * Thresholds may vary
  31. 31. 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 (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 (e.g. > USD 30,000) Evaluation Criteria for Invitations to Bid (ITB) Bids are always evaluated according to the principle of … “lowest price meeting technical specifications and stated requirements”
  32. 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 30,000*) Invitation to Bid (ITB) - formal solicitation method for well- defined goods (or services); contract award is based on lowest acceptable bid (> USD 30,000) 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 30,000) * Thresholds may vary
  33. 33. 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 (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 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 Generally, the technical proposal will be given 60%- 70% of the overall score, and 30%-40% will be given to the financial proposal The evaluation criteria are set out in the RFP
  34. 34. In summary Up to 30,000 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 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 - CPO approval after review and recommendation by Contract Committees * Thresholds may vary
  35. 35. In addition . . . Long Term Agreement/Frame Agreement Based on ITB or RFP process 2-4 years period Potentially more than one LTA for same goods/service Single tendering exercise reduces administrative effort The supplier benefits in terms of continuity of supply Direct Contracting Exception to the rule In case of extreme emergency Sole source If competitive bidding process has failed for valid reason Very stringent controls and has to be well justified
  36. 36. Evaluation Criteria  Acceptance of UN payment terms, terms & conditions etc.  Technical Requirements  Delivery Terms & Delivery Time  Recognised International/National Standards  Supporting Documentation  Proven Production Capacity & Financial Strength  Previous Contract References  Warranty Conditions & Appropriate After- sales Service  Price
  37. 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. 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. 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. 40. Thank you! Contact: kerry.kassow@undp.org

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