Doing Business with UNDP

Takakazu NumataSenior Procurement AdvisorProcurement Support OfficeBureau of ManagementUNDP, New York

Scope of Presentation• UNDP-Who we are and what we do• UNDP Procurement• How to Identify UNDP Business• How to Market your Goods and

Services• Need help?

Who we are…• UNDP is the UN’s global development network• Advocates for change and connecting countries to

knowledge, experience and resources to build a better life.

• UNDP is represented in 166 countries• Working to develop solutions to global and national

development challenges• Annual Human Development Report commissioned

by UNDP focuses on global debate on development issues

• Annual UNDP Programme Delivery: USD 4.3 billion

What we do…• Democratic governance• Poverty reduction• HIV/AIDS (GFATM)• Environment and Energy• Crisis prevention and recovery

• Women’s empowerment

Source of UNDP Funding

•Voluntary Contributions •Cost Sharing• Trust Funds

Procurement Trend (Million USD)

7

Procurement Breakdown - 2008

Consultants (SSA) ----- 9% Travel --------- 7% UNV ------- less than 1% Fellowships ------- less than 1% Project Personnel (SC) ---------- 8%

Goods

Services

Civil Works

----------- 76 % 85%

26%

50%

9%

7%0%0%

8%

Goods ServiceSSA TravelUNV Fellowships

Total: US$2.6 billion

Types of Goods & Services Procured

8

Top 15 Procurement Offices

• PANAMA• ARGENTINA• AFGHANISTAN• GUATEMALA• COLUMBIA • IRAQ• SUDAN

• BRAZIL• PERU• BANGLADESH• INDONESIA• HONDURAS• EGYPT• DRC

Above countries account for 50% of total UNDP procurement

Top 10 Products

• Electrical Equipment • Telecommunications

Equipment• Laboratory

Equipment• Motor Vehicles• Agricultural

Equipment

• Medical Supplies and Equipment

• Power Generators• Water Supply Systems• Construction Equipment

and Materials• Election Supplies

Top 10 Services

• Information Technology

• Public Administration

• Education, Training and Social Services

• Crisis Prevention• Banking Services

• Transportation • Water Supply• Environment• Freight Forwarding• HIV/AIDS Awareness Programme

Procurement Principles The following general principles

must be given due consideration while executing procurement on behalf of the organization:

• Best Value for Money • Fairness, Integrity, Transparency • Effective International Competition • The Interest of UNDP

Procurement Methods• Request for Quotation: Contract amount less than $100,000

• Invitation to Bid: Contract amount exceeding $100,000

• Request for Proposal: Contract amount exceeding $100,000

• Direct Contracting: Based on LTA or crisis situation

• For values less than US $2,500, country offices may engage in Local Shopping.

NOTE: All contracts exceeding $30,000 are reviewed by Contracts Committee before

award of contract.

Long Term Agreements (LTA)

• Long-term agreements (LTA) reduce administrative efforts by a single tendering exercise over the life of the arrangement. They are awarded on a 1-year renewable basis and exist at the country and corporate level.

• Advantages include:• quality assurance and legal requirements will be

dealt at the outset • the supplier benefits in terms of planning stock

levels and continuity of supply • a mutually beneficial longer-term working

relationship can be established

How to Identify UNDP Business

• Business with UNDP is primarily through participation in advertised, open, competitive procurement process

• Procurement at UNDP is decentralized and responsibility and ownership is vested with the country offices.

• Every country office is a potential business partner.• The main responsibility of the Procurement Support

Office (PSO) is to provide an enabling environment in terms of policy, guidance and operational support to Country Offices to ensure cost effective and efficient procurement and mitigate UNDP risks.

Consult and Review

• Procurement Notices• UNGM’s online procurement notices at

www.ungm.org•The General Business Guide for Potential

Suppliers of Goods and Services.• UNDP’s online procurement notices at

www.undp.org• Consult and review country office websites at

www.undp.org/countries• Development Business with procurement notices

at www.devbusiness.com

Supplier Registration• To be listed as a potential supplier, you have to

register with the United Nations Global Marketplace (UNGM)

• Common Supplier Registration Form available at www.ungm.org the same form is used by individual organizations to pre-qualify suppliers and incorporate suppliers into their internal procurement rosters.

• About the UNGM:• Single window for registration with the UN System• Allows the supplier to keep current business information

available to all UN Organizations as a tool for locating potential suppliers.

Eligibility Criteria to do Business with UNDP

• Completion of the Registration Form available at www.ungm.org

• Agreement to UNDP General Terms and Conditions.

• Quality compliance as per International / National product standards (i.e. ISO, DIN, BS etc.)

• Financial Strength (i.e., cash flow and liquidity)• After-sales Service• Environmental Compliance (i.e. ISO 14000)• Global Compact?

How to Market your Goods and Services to UNDP?

• Introduce your company• Contact the Resident

Representative• Visit the country office• Review the Activity Workplan• Meet the Project Manager &

others concerned

Need Help? ContactTakakazu Numata

Senior Procurement Advisor

UNDP/PSONew York

takakazu.numata@undp.org

Tel : (212) 906-6108Fax : (212) 906-6663

Thank you very much!