Presented by: Name Title UN Secretariat Procurement Division Date

Presented by: NameTitle

UN Secretariat Procurement Division

Date

Presented by:

Carol LeberTeam Leader,

Communications & IT Support Team

UN Secretariat Procurement Division

5-6 October 2009

DOING BUSINESS WITH THE UNITED NATIONS (UN)

A. Overview of the United Nations Procurement System

UN Procurement Statistics

How to Identify Business Opportunities

General UN Procurement Procedures

How to do Business with theUnited Nations (UN)

B. United Nations Secretariat Procurement Division

C. The UN Global Compact

D. Your questions and more info….

A. Overview

Overview

The United Nations is made up of a variety of organizational entities:

Specialised Agencies,

Funds & Programmes

Secretariat: UNHQs, Offices Away From Headquarters, commissions, tribunals and field peacekeeping missions.

Each organization has a distinct and separate mandate covering the political, economic, social, scientific, humanitarian, and technical fields.

Security Council

Trusteeship

Council

Funds & Programmes

Regional

Commissions

International

Criminal Tribunals

General Assembly

Political Missions

Peacekeeping Missions (16)

Economic and Social Council

International Court

of Justice

Specialized Agencies

MONUCUNMEE

UNAMSILUNTAET

UNMOGIPUNMIKUNMOPUNDOFUNIKOMUNIFILUNTSO

MINURCATUNAMID

BINUBBONUCAUNAMAUNAMI

UNIPSILUNMIN

UNOGBISUNOWAUNPOS

UNRCCAUNSCO

UNSCOL

ICTYICTRSCSLUNIIIC

UNAKRT

ECAECE

ECLACESCAPESCWA

ITC

UNDCPUNDP

UNICEFUNEP

UNIFEMUNFPAUNHCRUNHSP

UNVUNWRA

WFP

UN Offices Away From

Headquarters

The United Nations

Secretariat

ILOFAO

UNESCOWHO/PAHO

WORLD BANKIMF

ICAOIMOITUUPUWMOWIPOIFAD

UNIDO

UNOGUNONUNOV

IAEA

WTO (Trade)WTO (Tourism)CTBO Prep-Con

OPCW

Related

Organizations

Other UN Entities

OHCHRUNOPS

UNUUNSCCUNAIDS

www.iaea.org International Atomic Energy Agencywww.ilo.org International Labour Organisationwww.intracen.org International Trade Centrewww.unesco.org UN Educational, Scientific and Cultural Organization www.unfpa.org UN Populations Fundwww.unhcr.ch UN High Commissioner for Refugeeswww.unicef.org UN Children’s Fundwww.unido.org UN Industrial Development Organisationwww.unops.org UN Office for Project Serviceswww.undp.org UN Development Program

www.un.org UN Secretariatwww.unrwa.org UN Relief and Works Agencywww.wfp.org World Food Programmewww.wipo.int World Intellectual Property Organisation

Useful General Addresses

EACH ORGANISATION……

• has its own specific requirements for goods and services

• may conduct its own procurement activities

• follows, in general, common principles for procurement rules and regulations

• constitutes a separate and distinct customer/partner

• has its own tempo, portfolio, specific characteristics

YOU MUST LEARN ABOUT IT ……

Overview

Statistics (UN procurement system)

0

2000

4000

6000

8000

10000

12000

14000

16000

2002 2003 2004 2005 2006 2007 2008

Year

US

D M

illi

on

s

Goods Services

Total UN Procurement of Goods and Services (UN System) 2008

Major Items procured by the UN procurement system

Goods

• Food

• Pharmaceutical Supplies

• Vehicles

• Computers and Software

• Shelter and Housing

• Telecommunications Equipment

• Laboratory Equipment

• Chemicals (POL)

• Building Materials

Services

• Security Services

• Outsourced Personnel Services

• Engineering Services

•Construction

•Corporate Services

•Freight Services

•Printing Services and Equipment Rental

•Consultancy Services

•Telecommunication Services

How to Identify Business Opportunities

UN market knowledge

- UN structure - UN requirements

- UN procurement procedures

UN structure

- UN requirements - UN procurement procedures

- range of goods and services - international experience

- period established - existing customers/references

Languages

- English primary language - local languages

Standards - International standards - best value for money

Pre-registration process – Are you ready to supply to the UN (1/2)

Pre-registration process – Are you ready to supply to the UN (2/2)

Country knowledge, after sales services

Capacities: Financial, personnel, equipment

1. Mobilization

2. Acquisition project size

Persistence, endurance, patience

Supplier code of conduct: http://www.un.org/depts/ptd/pdf/conduct_english.pdf

Analysis, feedback and adjustment

Registration and Post registration process

Registration with the UNGM is the first step towards doing business with the United Nations and is mandatory.

Continue UN market research: Planning acquisition, contract award, UN information, match capacity and requirements

Thorough information about procurement: Principles, procedures, T&C, etc.

Obtain systematic / regular information about current procurement activities / opportunities: Keep yourself up-to-date and update regularly your vendor profile

Post registration process

Bid according to tender documents & instructions

• Administrative mistakes may lead to rejection of bid

• Observe international norms and standards or equivalent

• Seek clarification in case of questions

• If unsuccessful obtain debrief for your strength & weakness

• If successful – perform according to contract

• UN requires highest standards of performance!

Overview of UN Procurement System Procedures

Common Guidelines for UN Procurement system

Procurement activities of the UN system are based on the following principles:

The objectives/needs of the UN Organization

Fairness, integrity & transparency through international competition

Economy & effectiveness

Best value for money

These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract

Competitive suppliers of previous procurement exercises

Past performance

Suppliers of the required goods or services, found on the UN Global Market (UNGM)

Codification (UNCCS)

Automatic tender reference for UN Procurement Division

Through calls for Expression of Interest (EOI)

Search of World Wide Web

Trade Missions, Chambers of Commerce

Information exchange with other UN Agencies

How are vendors are selected ? (UN sourcing)

Expression of Interest (EOI)Written communication by a supplier to provide information about its products, resources, qualifications and experience

Request for Quotation (RFQ)Less formal solicitation, low value, standard specifications, readily available on the market (off the shelf)

Invitation to Bid (ITB)Formal solicitation, lowest evaluated price, administrative and technically compliant

Request for Proposal (RFP)Formal solicitation, requirements possibly met in a variety of ways, overall best solution will win the award (combining technical solution, risk and price considerations) -- not necessarily the lowest price

Types of Solicitation

Up to [30,000 USD] - Local, informal, simplified acquisition procedure - Requests for Quotation (RFQ)

• Above [30,000 USD] - Invitation to Bid (ITB) and Request for Proposal (RFP)

- Open and formal: advertised (on the web) generally larger shortlist (minimum 6 potential bidders)- Public bid opening

• Contract award – Contract authority

- Review and recommendation by independent body for higher value contracts

Thresholds/Award for types of solicitation

Bid Evaluation Criteria (not exhaustive list)

Acceptance of UN payment terms, terms & conditions, contract template, liability, legal capacity, etc.

Delivery Terms (INCOTERMS 2000)

Delivery Time

Technical Requirements

Recognized International Standards or similar

Supporting Documentation

Proven Production Capacity & Financial Strength

Warranty Conditions

Appropriate After-sales Service

Previous Contract References

Price (life cycle cost)

UN General Clauses Conditions of Contracts (2008) for Goods, Services, Combination, Construction

Most provisions are common within the UN procurement system, however some provisions may vary in text depending on individual agency requirements.

Potential suppliers are encouraged to familiarise themselves with the UN Terms & Conditions (UNGCC)

1. Immunity & Privileges

2. Bid and Performance bonds

UN Supplier Code of Conduct

Common General Terms & Conditions

B. United Nations SecretariatProcurement Division (PD)

New York

UN SECRETARIAT PROCUREMENT DIVISION

Director, Procurement Division

Procurement Operations Service

Logistics & Transportation Section

Integrated Support Service

Office of the Director

Peacekeeping Procurement Section

Corporate & IT Procurement Section

Policy & Best Practices Unit

Planning Compliance & Monitoring Section

Procurement Management Section

Capital Master Plan Unit

General information:

Detailed general and specific information available at: http://www.un.org/depts/ptd/contact.htm

Generalist procurement organisationWorld wide operation

Previous procurement principles apply plus “zero tolerance policy”

and additional provisions for internal control(post employment) and risk management

Easy registration process (next brief)

Your commitment – Our Support - Your success !

• UN Peacekeeping Missions• UN Economic and Social Commissions (OAH)• International Criminal Tribunal

The United Nations Secretariat - Area of operation

NYC

The United Nations Procurement Service

Air Transportation Services

Chemical & Petroleum Products

Telecommunication Equipment & Services

Food Rations & Catering Services

Motor Vehicles/Parts & Transportation Equipment

Computer Equipment and Services

Logistics & Freight Forwarding

Prefabricated Buildings

Inspection & Related Services

Architecture, Engineering & Construction Related Services

Electrical Apparatus & electronic component

Real Estate Lease & rental

Banking & Investment

Security Equipment

Pharmaceutical products and vaccines

Medical Equipment

Types of Equipment, Goods and Services Procured

New York HQs and Field Missions: types of Goods and Services

Procurement Trend 2003-2008 (in US$ millions)

3,1002,0001,904

1,620

1,311

892

2003 2004 2005 2006 2007 2008

$55.50$55.7

$103.9

$53.3

$13.7$8.2

$0

$20

$40

$60

$80

$100

2003 2004 2005 2006 2007 2008

Business Placed with Canadian Suppliers 2003-2008 (in US$ Millions)

Major Goods and Services Purchased in 2008 in Millions (US$)

Detailed Statistics Available at:

http://www.un.org/depts/ptd/statistics.htm

www.un.org/depts/ptd

UN Capital Master Plan (CMP)

Overview

UN Capital Master Plan (CMP) – Business Opportunities 1/5

The mission of the Office of the Capital Master Plan is to manage the historic renovation of the United Nations New York Headquarters Complex and to execute the renovation on time and within budget, in a safe, accountable, and transparent manner, in order to create a modern, safe and sustainable work environment.

Approved construction budget for the project is $1.876 billion.

Under ‘Accelerated Strategy IV’ first construction works commenced on site during Spring 2008 with final completion scheduled for late 2013

The project will provide business opportunities for Developing Countries and Countries with Economies in Transition.


Procurement is being managed by UN Secretariat Procurement Division (UNPD) in conjunction with Skanska USA Building Inc.

UNPD has already carried out the procurement of the main design team appointments and has also appointed Skanska USA Building Inc. as Preconstruction Services Manager and Construction Manager (a subsidiary of Skanska AB (Sweden)).

Certain residual specialist consultancy appointments may still be procured directly by UNPD but the main bulk of construction procurement is now being carried out by Skanska with appropriate UNPD oversight.


The works will be split into 20-30 separate Construction Management contracts on a Guaranteed Maximum Price (GMP) basis.

Skanska appoints Trade Contractors (subcontractors) on a direct contract basis.

Construction Management Agreements are still to be negotiated for:- The Secreatriat The General Assembly The Conference Building The South Annex The Dag Hammarskjold Library


Further direct appointments by UNPD will be advertised initially as requests for Expression of Interest (EOI) on the UN Procurement Division website at

http://www.un.org/Depts.ptd.eoi.htm

Such direct appointments are likely to be limited to specialist consultancy services or specialist construction purchases.

Vendors who wish to work directly for the UN must register in advance via the UN Global Marketplace website at www.ungm.org

Trade Contractor (subcontractor) appointments by Skanska are advertised initially as requests for Expression of Interest (EOI) on the Skanska USA Building Inc website at

https://partners.myskanska.com/usa/clients/unitednations/CMP/default.aspx

Vendors who wish to work for Skanska as Trade Contractors are required to prequalify with Skanska via the link at the same webpage

Both UNPD and Skanska welcome enquiries from vendors from Developing Countries and Countries with Economies in Transition.


UN Procurement Division contact: Simon Darnell United Nations Procurement Division 304 E45th Street, New York, NY 10017 Tel: +1 917-367-2659, E-mail: [email protected]

Skanska USA Building Inc. procurement contactMs. Kyrsten BreaSkanska USA Building Inc.c/o United Nations Capital Master Plan, Rm. L-1B-179United Nations, United Nations PlazaNew York, NY 10017Tel: +1 212 -729-6261, E-mail: kyrsten.brea@skanska .com

Further website addresses:-

UN Capital Master Plan homepage: http://www.un.org/cmp/uncmp/english/index.asp

Skanska Capital Master Plan homepage: https://partners.myskanska.com/usa/clients/unitednations/CMP/default.aspx

C. UN Global Compact

“

Human Rights Labour Environment Anti-Corruption

Voluntary international corporate citizenship network initiated to support the participation of both the private sector and other social actors to advance responsible corporate citizenship and universal social and environmental principles to meet the challenges of globalization

The UN Global Compact

Ten Principles:

1. Business should support and respect the protection of internationally proclaimed human right; and2. Make sure that they are not complicit in human rights abuses;3. Business should uphold the freedom of association and the effective recognition of the right to

collective bargaining;4. The elimination of all forms of forced and compulsory labour;5. The effective abolition of child labour; 6. The elimination of discrimination in respect of employment and occupation;7. Business should support a precautionary approach to environmental challenges;8. Undertake initiatives to promote greater environmental responsibility; 9. Encourage the development and diffusion of environmentally friendly technologies;10. Business should work against all forms of corruption, including extortion and bribery.

www.unglobalcompact.org

The UN Global Compact

Thank you & Good luck!

Any questions ?

Presented by: Name Title UN Secretariat Procurement Division Date

Documents

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