Transcript Slide 1

UN Procurement Procedures
1
20-07-2015
The Procurement Process
Strategic analysis/
Procurement plan
Request for procurement
action
Development of
specifications/TOR/SOW
Identification of suppliers
Market research
Selection of procurement
method
Informal procurement
method: Shopping/RFQ
Formal procurement
method: ITB/RFP
2
20-07-2015
The Procurement Process
Informal
‘Shopping’
Less than USD2,500
Formal procurement
method: ITB/RFP
RFQ – Request for
Quotation,
Up to USD30,000
ITB
Invitation to Bid,
Over USD30,000
RFP
Request for Proposal,
Over USD30,000
Used for Goods and
Services
Used for Goods and
Civil Works
Used for Services
(can incl. Goods)
Advertisement
Preparation of formal
solicitation documents
Advertisement
Preparation of formal
solicitation documents
Identify potential
Suppliers
Document 3
Quotatations
Lowest Price
Bid Receipt & Opening
Evaluation
Contract approval
process
Contract award
Contract management
20-07-2015
Lowest Priced
Compliant Bidder
Separate Bid Receipt &
Opening Tech & Fin
Separate Evaluation
Contract approval
process
Contract award
Contract management
3
Best Scored bidder
The Procurement Process
Informal
‘Shopping’
Less than USD2,500
Formal procurement
method: ITB/RFP
RFQ – Request for
Quotation,
Up to USD30,000
ITB
Invitation to Bid,
Over USD30,000
RFP
Request for Proposal,
Over USD30,000
Used for Goods and
Services
Used for Goods and Civil
Works
Used for Services
(can incl. Goods)
Expression of Interest
Prequalification
Post Qualification/
Pre-shipment Inspection
Identify potential
Suppliers
Document 3
Quotatations
Lowest Price
Advertisement
Preparation of formal
solicitation documents
Bid Receipt & Opening
Evaluation
Contract approval
process
Contract award
Contract management
20-07-2015
Lowest Priced
Compliant Bidder
Advertisement
Preparation of formal
solicitation documents
Separate Bid Receipt &
Opening Tech & Fin
Separate Evaluation
Contract approval
process
Contract award
Contract management
4
Best scored bidder
Additional processes
• Expression of Interest
Used as part of market research
Identifying and prequalifying suppliers
Keep abreast with new developments
Does not necessarily result in procurement
• Prequalification
Can form part of ITB/RFP
Used for high-risk goods such as pharmaceuticals, condoms
Used for where high impact if delivery fails, such as elections
Confirming manufacturing, quality standards, other issues i.e. child
labor
Very specialised for pharmaceuticals
• Post Qualification/Preshipment Inspection
Used as part of testing pre-contract stage
Ensuring equipment works under special conditions
5
20-07-2015
Samples of EOI
Agency website, UNPD
Agency website, UNDP
6
20-07-2015
7
20-07-2015
Request for Proposal (RFP)
Application:
• Used for formal competitive bidding when requirements cannot be
described in a definite or complete manner, i.e. when a technical or other
solution is sought (TOR).
• Normally used for procurement of works and services. Two-envelope
system (technical and financial proposal).
Important:
• Evaluation Criteria must be part of RFP.
Award of contract:
• Select proposal that offers the best value in accordance with evaluation
criteria.
8
20-07-2015
RFP Process Illustrated
•
•
•
•
Based on actual case
Procument of Services results in RFP method
Project for Guard Security Service for UN offices in Pakistan
UNDP Pakistan country office requested UNDP/IAPSO in Copenhagen to
undertake procurement on their behalf
• Security service also for other UN Agencies in Pakistan
• Case illustrates:
EOI
Pre-bidding meeting
Detailed Tender Documentation
Examples of Evaluation Criteria related to Services
Examples of Outcomes
RFP resulting in Direct Contracting
And another unexpected turn in events . . .
• Confidentiality . . . Names and documentation
• NB: RFP can also be done for goods, e.g. part of complete solution, or where
there could be alternative or varied goods to meet the same need
9
20-07-2015
EOI
Reason
Supply market analysis
Needed to comply with UN
Security Council requirements
Preqaulification
Published on IAPSO website
and in local media
Outcome
19 EOIs Received
8 Companies shortlisted
10
20-07-2015
RFP
RFP
Participation only for short
listed suppliers in this case
Why? Control of process . . .
Required 3 compliant bids
If no prequalification, all
welcome to participate
11
20-07-2015
What to look out for
• Allow to bid on sections or only
total requirements
• Pre-bidding meeting
• Clarifications and Amendments
Communicated to all
Suggesting alternatives
Advise on short delivery times
12
20-07-2015
Pre-bid meeting
• CVs for staff
• Suggestions by
suppliers
• Letters rule
• Detailed evaluation
method not disclosed
13
20-07-2015
Pre-bid meetings and visits
• Open to suggestions
• In UN’s interest to have compliant bids
14
20-07-2015
Details
• Language
• Checklist of documents
• Use the correct format!!
• Impressions and facts
15
20-07-2015
Policies and Standards
• Quality Standards vary
• Supplier Code of Conduct
• NB:
No pricing information
Numbering
Proprietary Info
Confidentiality
16
20-07-2015
More Details
• Quote in requested
currency
• Note: Letter overrule
figures
• Signatures
Copies
• Payment terms not
negiotable
17
20-07-2015
Deadlines
• No exceptions!
• Time difference
• Envelopes
18
20-07-2015
Opening and Evaluation
• Committee
• Errors
• Non-responsive bids
Late
Unsigned
Incomplete
Wrong format
• Tech & Fin Proposals
19
20-07-2015
Formula
20
20-07-2015
Actual Score sheet
Company A
Company B
• Ranking
21
20-07-2015
Details of Evaluation
22
20-07-2015
Actual document and Evaluations
23
20-07-2015
Actual evaluation comments
24
20-07-2015
Technical Evaluation Outcome
25
20-07-2015
Contract
• Cancel process
Poor process
Lack of funds
Change of needs
• Flexibility and
patience
required
26
20-07-2015
Performance Security and Payment
Page 31
•
•
•
•
Bank guarantees/performance security
Payment terms not negotiable
30 days after delivery
Could be staggered depending on services/goods
27
20-07-2015
The form
28
20-07-2015
Page 24
Performance
• Crucial
• Share information
via UNGM
• Vendor eligibility
policies
29
20-07-2015
Page 27
Price Schedule
30
20-07-2015
Financial Proposal’s Opening
Company A
Company B
31
20-07-2015
Financial Proposal
Company A
Company B
32
20-07-2015
Internal Review of Procurement Process
• For all processes
over USD30,000
• Between 30,000 –
300,000 Local
approval
• Over USD300,000
approval at HQ
level
• Thresholds vary
33
20-07-2015
Headquarter Review
• Review:
Process
Value For Money
Quality Assurance
Documentation
Outcome:
• Queried number, qualification and supervision of guards
• Seeked report on performance of Company A (existing supplier)
• Concerned about limited competition
and requested outcome of evaluation results
• Performance report shows issues with supplier ...
• Meeting with supplier to address issues
• Rewarded for 6 months period and measures and stringent
arrangements put in place to monitor
34
20-07-2015
How the ITB Process Differ?
•
Used for goods and works where specific quantities are
available.
• Simplified process, comparison simple
Instructions to bidders includes:
• Incoterms 2000
• Delivery dates FCA and FOB
• Freight arrangements
• After-sales service
• Training
• Spare parts
• Deviations from specifications
• Country of origin information and developing countries
35
20-07-2015
Supplier qualifications
36
20-07-2015
Evaluation Criteria
• Compliance with
GTAC
• Supplier Criteria
• Technical Specs
• Price and Delivery
Time
37
20-07-2015
Price schedule
• Do NOT change format
38
20-07-2015
Deviations
39
20-07-2015
20-07-2015
Practical Tips
40
Practical Tips for Potential Vendors


Research UN agencies and traditional items/services required

Register on www.ungm.org
E-mail address
Correct coding
Key words
Up to date
Respond to reminders
Marketing your goods and services
Look for EOI
Post/e-mail information
English on website
Start where you are doing business
41
20-07-2015
Practical Tips for Potential Vendors

Finding opportunities
UNGM – Tender Alert Service
Agencies’ websites


Always respond

Seek clarification
Pay attention to:
Deadlines, timezones
Format
Language
Currency
Addressing of envelopes
42
20-07-2015
Practical Tips for Potential Vendors


Attend Bid Openings or ask Embassy/Consulate

Be patient and perservere
Prepare to meet new challenges
Kits, training materials, after-sales service
Awareness of environmental concerns
43
20-07-2015