In order to fulfil its mandate and achieve its vision of empowered lives and resilient nations, UNDP must procure a significant volume of goods and services. As a public organization entrusted with donor funds and committed to supporting developing economies, UNDP works to improve access to quality assured supplies in a cost effective and reliable way. We do this by abiding the following principles:
Best Value for Money, which consists of the selection of the offer that best meets the end-users’ needs and that presents the best return on investment. Best Value for Money is the result of several factors, including quality, experience, the vendor’s reputation, life-cycle costs and benefits, and parameters that measure how well the good or service allows the organization to meet its social, environmental or other strategic objectives.
Fairness, Integrity and Transparency, which ensures that competitive processes are fair, open, and rules-based. All potential vendors should be treated equally, and the process should feature clear evaluation criteria, unambiguous solicitation instructions, realistic requirements, and rules and procedures that are easy to understand.
Effective International Competition, understood as giving all potential vendors timely and adequate information on UNDP requirements, as well as equal opportunity to participate in procurement actions, and restricting them only when it is absolutely necessary to achieve UNDP development goals; and
In the best interest of UNDP, which means that any business transactions must conform to the mandates and principles of UNDP and the United Nations.
UNDP has to strictly observe its financial rules and regulations. While this may sometimes lengthen the procurement process, UNDP delegates a significant amount of authority to its Country Offices, 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.
UNDP Policy against Fraud and other Corrupt Practices
More on UNDP Procurement procedures
E-Tendering Guidance for Suppliers
How does UNDP do business?
UNDP Malawi procures goods and services through competitive solicitations. The following methods are used for the procurement of goods and services:
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.
A Request for Quotation (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.
An Invitation to Bid (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.
A Request for Proposal (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.
Exceptionally and when it is deemed in the best interest of UNDP, procurement staff may buy goods or services through Direct Contracting.
Most of UNDP’s procurement activities are dedicated to acquiring services, which may be executed by companies or by individuals. Individuals provide services directly to UNDP under the Individual Contract (IC) modality.
The IC modality may be used when:
- Services cannot be provided by existing staff due to a lack of specialized knowledge or expertise;
- The assignment is results-oriented and can be completed on or off UNDP premises, within a definite period of time linked to deliverables;
- The assignment requires the performance of non-staff duties.
- ICs are engaged through a Reimbursable Loan Agreement (RLA) that is awarded through a competitive process, covering professional fees and certain expenses, such as travel, if and when required. Country Offices may issue Expressions of Interest (EOI) from time to time, in order to keep a roster of potential ICs.
ICs are not considered staff and do not receive entitlements when engaged by UNDP. If the services require travel, individuals may be given “Expert on Mission” status.
Evaluation of offers
Each procurement method has a slightly different evaluation method. When evaluating RFQs and ITBs, the price is the most important element. In contrast to this, an RFP relies mostly on a technical evaluation. The technical component primarily determines whether the proposal will be accepted or declined. Evaluation is done through pre-set criteria, which are clearly indicated on the bidding documents.
When examining, evaluating and comparing offers, UNDP may consider price as well as non-price factors, which include cost (operation, maintenance, repairs); delivery/completion time; functional characteristics; terms of payment/guarantee; a vendor’s performance record with UNDP and other UN agencies; and the vendor’s presence in the local market
Terms of contract
In order to become a vendor to UNDP, you must accept the General Terms and Conditions of Contract (GTCs). A copy of these GTCs is included in bidding documents. UNDP procurement staff may not modify these terms of contract, and any alterations require the advice and consent of the Legal Support Office (LSO).
For more information: https://www.undp.org/procurement