Depending on the nature and size of the project and its procurement elements, UNDP may use any of the following competitive methods set out in these Guidelines to procure goods, civil works or services. Commonly used competitive methods include:

• Open International Competition
• Limited International Competition
• Local and/or National Competition

UNDP regards open international competition (OIC) as the preferred method of procurement with its overall ability to achieve all principal objectives of the intended programme. However, in many circumstances where it is determined that OIC is not feasible, staff may employ use of an alternative method. In such, UNDP requires its staff to ensure that the selected method is both economic and efficient (i.e., obtains the best value for money). All methods of procurement irrespectively must be open and fair to all interested Offerors to the extent possible.

 

PROCEDURE:

Open International Competition

Open international competition intends to provide all eligible and qualified Offerors adequate and timely notification of UNDP’s requirements and to provide them equal access and fair opportunity to compete for contracts of required goods, civil works or services valued at USD 100,000 or more. Initiated by an advertisement, OIC invites interested Offerors to request the solicitation documents from the Business Unit.

For contracts valued between USD 100,000 and USD 500,000, advertisements should be posted on IAPSO’s website and/or as a Procurement Notice on UNDP’s website for ten to thirty days depending on the complexity and nature of the goods, civil works or services to be obtained.

For contracts valued greater than USD 500,000, advertisements should in addition be made in Development Business and/or a relevant publication of wide international circulation. UN Development Business (UNDB) is a publication providing comprehensive information on opportunities to supply goods, civil works and services for projects financed by the United Nations, governments and International Financial Institutions. UNDB is published both online and in paper form. The paper version is printed twice monthly and the online version (e.g., UNDB Online) is updated several times a week.

Limited International Competition

Limited international competition (LIC) narrows competition amongst an ongoing shortlist of qualified Suppliers selected in a non-discriminate manner by the Business Unit either from rosters, prequalification, expressions of interest, etc. LIC is appropriate where OIC is unsuitable, exigent circumstances persist or the global market retains a limited availability of the required goods, civil works or services.

Local Competition

Local competition, unlike the aforementioned international competitive methods is generally exercised for procurement in the country where the programme is to be deployed. Business Units may use local competition where:

• civil works are scattered geographically or spread over time and the country has a sufficient base of Suppliers (i.e., minimum of three);
• professional services are valued at USD 30,000 or less;
• goods are available locally at prices below the global market price; or
• programmes require knowledge of the local/national system (e.g., Human Development Report).

Where applicable, advertisements shall be published in the national gazette or national or local newspaper or local publications to ensure thorough competition.

 

PROCUREMENT METHODS:

 

• Request for Quotation (RFQ)
• Invitation to Bid (ITB)
• Request for Proposal (RFP)
• Direct Contracting/Local Shopping

Request for Quotation (RFQ)

   Most flexible / Least formal

   < USD2,500 and > USD100,000

   Written quotations

   Pre-selected Suppliers

   Standard format available

   Basis of award is Price.

   Minimum 3 Responsive Offers

Invitation to Bid (ITB)

   > USD 100,000

   Used for Goods Procurement

   Open advertising preferred

   Lowest priced, qualified, responsive offer

   Should not be negotiated

   Model bidding document available

Request for Proposal (RFP)

   Services, complex goods

   Detailed evaluation criteria

   Two envelope system

   Combination of price and services/solution

Direct Contracting/Local Shopping

   < USD 2,500

   No Competitive Market

   Standardization

   Co-operation with other UN Organization

   Previous identical requirement

   No previous satisfactory results of bidding

   Real Estate

   Genuine urgency

 

Procurement Regulations

UNDP and Procurement

Contracts awarded - 2007

Contracts awarded - 2008

Consulting companies

Individual consultants