How we do business
Procurement is the overall process of acquiring goods, civil works and services which includes all functions from the identification of needs, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration through the end of a services’ contract or the useful life of asset.
UNDP Procurement is based on principles of:
Best value for money
Fairness, integrity and transparency
Effective international competition
Interest to UNDP (economy, efficiency, equal opportunity to compete, transparency in the procurement process)
UNDP Procurement has to strictly observe its financial rules and regulations. While this may sometimes lengthen the procurement process, UNDP has introduced more flexible methods for low-value/low-risk purchasing, and approves purchase orders electronically, all of which save time and money for the organization and its vendors.
If the value of the goods, services or simple works to be procured is below USD 5,000, Micro-Purchasing may be used. This method uses a simple canvassing template, and procurement staff may obtain pricing information over the phone, internet, or by visiting local vendors. Micro-purchasing can normally be done in 1 or 2 days. Award is made to the lowest price available.
Request for Quotation (RFQ)
An RFQ is an informal invitation to submit a quotation, used for goods/services/civil works valued between USD 5,000 and USD 149,999. Depending on the complexity of the requirement, vendors will be given 3 to 10 business days to respond to an RFQ. 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 USD 150,000 or more. Normally price is the sole determinant in making an award. Where all qualification requirements and technical criteria are met, an award is made to the lowest bidder. Vendors will normally be given 10-15 business days or more to respond, depending on the complexity of the requirement. In some cases, involving large and complex contracts, vendors may be asked to pre-qualify.
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 USD 150,000 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 or to the highest rated proposal using the combined scoring method, which assigns a weight distribution between technical and financial proposals set out in RFP. Vendors are normally given 10-15 business days or more to respond to an RFP. In some cases, vendors may be required to pre-qualify.
For more information on UNDP procurement, please visit: http://www.undp.org/content/undp/en/home/procurement.html