Inter-Agency Procurement

Technical Module

What is Inter-AgencyProcurement?

• Collaborative procurement by participating UN Agencies for commonly required goods and services.– Use of existing LTAs/Contracts

entered into by one Agency– Joint bidding and contracting by two

or more agencies for same goods/services.

Joint/Common UN Contracts

• Common Contract/Long Term Arrangements between participating UN agencies and suppliers/service providers.

• Same Terms and Conditions:– Prices– Delivery– Services– Obligations

Typical Commodities

• Office supplies• Fuel• Transport equipment• Office Equipment, including

servicing and maintenance• Programme supplies

Typical Services

• Building maintenance/cleaning services• Camp management• Travel Services• Security• Roster for consultants/ suppliers• Customs clearance and freight forwarding• Transportation services• Telecommunications• Inspection Services

Advantages

• Economies of Scale– Direct: Lower Prices– Indirect: Savings in HR/Administrative

Costs and Time

• Consistency of quality of goods or services

• Collaboration instead of competition• Better use of staff time and effort

Disadvantages

• Limit competition to larger suppliers and contractors

• May lead to long term monopolies

• May lead to less personalized services (short term)

Challenges

• Agreement/consensus among UN Agencies

• “Buy in” from Heads of Agencies and respective procurement staff

• Selection of procurement procedure to be used

• Agreement on financial thresholds

Georgia

Type of CS: Long Term Agreements (Office supplies & stationeries – 125 items)

No. of Agencies: 8 (+ various GoG projects)

Cost if done by Individual Agency: aver. $12,000 per annum/per agency

Cost done as a CS: aver. $ 9,840 per annum/per agency

Savings: $ 2,160 per annum/per agency or $17,280 per annum collectively.

ZimbabweType of CS: Fuel ProcurementNo. of Agencies: 17 UN and 4 quasiRequired: approx 100,000 ltrs/mo collectively

A. Cost of previous contract @ 100,000L x .58 cents = $58,000 usd per month. Annual cost = $696,000 usd

B. Cost of new contract @ 100,000L x .35 cents per liter (incl. mgt fee) = $35,000 usd per monthAnnual cost = $420,000 usd

C. Savings per annum= $276,000 usd

Zimbabwe

Type of CS: Fuel Procurement (continued)

D. Efficiencies and Benefits:1. Continuous/regular fuel supply2. Sole UN access and use (+ staff)3. Electronic monitoring/control of fuel

disbursements4. Leverage with provider

Source: Harare OMT

Philippines

Type of CS: Outsourcing Registry and Documentation Unit

No. of Agencies: 10

A. Cost if done by Individual Agency: $13,000 aver. per annum/per agency

B. Cost done as a CS: $ 4,500 aver. Per annum/per agency

C.Savings: $8,500 per annum/per agency or $85,000 per annum collectively.

Philippines

Type of CS: Outsourcing Registry and Documentation Unit

No. of Agencies: 10

D. Efficiencies and Benefits:1. Outsourced administrator cost-shared2. Better leverage with service provider3. Efficient use of respective Admin staff4. Technical expertise on docs

management5. Reduces facility and space use6. Simplified billing and payments

Next Steps

• Advocate with Heads of Agencies through the Operations Management Team

• Identify services and supplies commonly required by participating agencies

• Determine extent of competition

Next Steps

• Select procurement procedure

• Select lead procurement agency(ies)

• Establish bid evaluation committees

• Conduct competitive bidding, evaluation and contract award

Types of Arrangements

• Resulting LTA/contract will be established by the lead procurement agency on behalf of participating agencies. *Madagascar example

• Each participating organization will sign the LTA with the winning bidder using the same terms and conditions.

Samples and good practices

Visit www.undg.org ‘Common Services’

‘Good Practices’

Other LTA Examples Includes:

• Travel– Ecuador & Kenya

• Security- Mozambique

END