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:
1 |
Best Value for
Money |
2 |
Fairness, Integrity, Transparency
|
3 |
Effective International Competition |
4 |
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 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 (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.
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 (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.
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 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; 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.
More details about UNDP Programme and Operations Policies
and Procedures covering Contracts, Assets and Procurement can be found
by clicking
here.
Main procurement modalities:
Purchase Orders
In the case of goods valued at USD 2,500 or more procured by UNDP, contracts must be issued in the form of a written purchase order. (e.g., 20,000 first aid kits for a GFATM project in Senegal)
Institutional Services Contracts
Institutional services contracts are utilized to contract with an institution or other legal entity for professional services valued at USD 30,000 or less. The institutional services contract serves as a less formal agreement as the services may not be considered complex, warranting additional protective measures such as are standard in the professional services contract. (e.g., electrical wiring services valued at USD 25,000 for HQ)
Professional Services Contracts
Professional services contracts, on the other hand are employed to contract with an institution or other legal entity in order to perform professional services generally valued above USD 30,000, for specified deliverables. (e.g., demining operations valued at USD 498,000 in Southern Afghanistan).
Reimbursable Loan Agreement
Reimbursable loan agreements (RLA) are used when contracting with a government institution; university; or other legal entity comprised of at minimum three staff personnel to engage consultancy services of select individuals. (e.g., Professor X of ABC University to undertake anti-corruption studies valued at USD 125,000 for a period of one academic year)
Civil Works
Contracts for civil works are drawn up for the procurement of transportation, infrastructure, civil or environmental engineering services required by the Business Unit. (e.g., construction of a thermal power station valued at USD 12.5 million in Northern Iraq)
Long Term Agreements
A long-term agreement (LTA) is a mutual arrangement with Supplier to provide goods or services as required, over a specific period of time, with the quantity to be determined at prescribed prices or pricing provisions. LTAs are distinguished by the repeated nature of the transaction consequent of the relationship established between parties. Long-term purchase agreements are common practice to ensure a reliable source of supply goods and services at the lowest price. (e.g., UNDP retains an option to purchase TB drugs from ABC, Inc. at a fixed rate for two years).
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