UNDP-China Partnership for South-South and Global Issues: 2013 Highlights
UNDP Procurement Management Operations Manager, UNDP China 2 July 2015 1.
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Transcript of UNDP Procurement Management Operations Manager, UNDP China 2 July 2015 1.
Content
• Procurement Definition • Procurement Support Office • Procurement Principles • Contract types • Procurement Process• Types of Competition • Procurement Method • Bid Evaluation • Procurement Oversight and Review • Key Steps in Atlas
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What is Procurement
The term “procurement” refers to the process of acquiring goods, service and civil works. The process spans the whole cycle from identification of needs through the end of a services contract or the useful life of an asset.
Procurement Support Office
New York, USA
• PSO in NY: policy-making and oversight
Copenhagen, Denmark
• PSO Supports to 166 Country offices
• Responsibility for procurement of goods and services related to strategic objectives, i.e. elections, crisis prevention and recovery, Global Fund etc.
UNDP Procurement Principles
1. Best Value for Money: Selection of the offer that best meets the end-user’s needs
2. Fairness, Integrity and Transparency: are responsible for protecting the integrity of procurement process and maintaining fairness in UNDP’s treatment of all Offerors
3. Effective Competition: provide all eligible prospective Offerors with timely and adequate notification of UNDP’s requirements and an equal opportunity to tender for the required procurement
4. The interest of UNDP: protect interest of UN and UNDP
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Contract type
• Purchase Order/PO: goods • Institutional Services Contract: service from a firm at
value below US$ 30k • Professional services contract: service from a firm at
value above US$ 30k • Individual Contract (IC): consulting service from
individual (RLA & NRLA: engage an individual from a firm)
• Civil works Contract: for civil works • Long Term Arrangement: apply to all above
mentioned contract types with long engagement
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SpecificationTerms of ReferenceStatement of Works
Evaluation of Bidders
Procurement Process
Prepare Invitation for Bidding Documents
Invitation for BiddingChoose Supplier
Contract Management
Define Procurement Modality
Define Needs
Appraisal of ProcurementSigning of Contract
Types of Competition
• Open International Competition: provide equal opportunity to the universe of eligible vendors
• Limited International Competition: narrowing the competition field into a short list of prospective offerors
• National Competition: under certain circumstances
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Procurement Method
Procurement Method
Contract Value Type of Requirement
Method of Solicitation[2]
Type of Competition
Micro-Purchasing
Below USD 5,000 Goods, Services, or
Simple works
Canvassing (by phone, by internet, by shopping, etc)
Limited International or
National
RFQ USD 5,000 to 99,999
Goods, Services,
or simple works
Written Request for Quotation
Limited International or
National
ITB USD 100,000 and above
Goods or Works
Advertisement in International media
Open International
RFP USD 100,000 and above
Services Advertisement in international media
Open International
Direct Contracting
Any Amount within
permissible circumstances
Services, Goods,
or Works
Direct Invitation or Negotiation
None
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1. Micro Purchasing
Micro Purchasing <US$ 5,000
Small – value purchase goods or service below US$ 5,000
Use simple canvassing form (over phone, internet, or through local vendors)
Record all information and price collected The person who collected the data must be
accountable for the correct and accuracy of all information and data, sign it
Approved by staff who has the delegated authority
2. Request for Quotation (RFQ)
REQUEST FOR QUOTATION (RFQ)
Commonly used for procurement of simple goods/service and aggregate amount less than $100,000
Advertisement is not a must
Collect at least 3 formal quotations
Prepare quotation comparison
CAP review is required between $50k-150k
Award is typically based on lowest price among responsive bidders
3. Invitation to Bid
INVITATION TO BID (ITB) < US$ 100,000
used for supply of goods or works where requirements are clearly defined (little room for deviation)
Advertisement is mandatory for at least 2 weeks for contracts over US$ 100,000
Formal bid opening is required
Evaluation by a ad-hoc evaluation committee is required
Contract < US$ 150K needs CAP review and > US$ 150K RACP review
Award is typically based on lowest price among responsive bids
4. Request for Proposal
Request for Proposal (RFP) > US$ 100,000 Use for services or complex goods + range of approaches Adv is mandatory for at least 2 weeks for contracts > US$
100,000 2 formal bid openings are required: technical proposal and
financial proposal
Evaluation by a ad-hoc evaluation committee is required Contract < US$ 150K needs CAP review and > US$ 150K
RACP review Award does not need go to the lowest priced offer, and could go
to the higher rated proposal, provided it is meet all evaluation criteria and the budget ceiling
Bid Evaluation: goods • Compliance with requirements relating to technical design features,
specifications, functions and etc
• Compliance with start-up, delivery or installation deadlines
• Demonstrated ability to comply with critical provisions such as execution of the Purchase Order
• Demonstrated ability to honor important responsibilities and liabilities allocated to Supplier listed in the ITB (e.g. performance guarantees, warranties, or insurance coverage, etc).
• Proof of after-sales service capacity and appropriateness of service network.
• Compliance with pricing conditions set in the ITB• Responsive bidders means to meet all above technical requirements
• Award is typically based on lowest price among responsive bids
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I. Management : Track Record on the work required, Experience with UN/Development Organizations, Technical Capability, Quality Standard Accreditations, Financial strength, Credit lines, Reputation, etc
II. Technical Proposal: Full compliance to specifications/ requirements/TOR, thorough understanding of the requirement, appropriateness of methodology to the local conditions, practicality of approaches, acceptability of implementation timelines, etc.
III. Key Experts: Experience/Qualifications of the team that will be engaged with UNDP, right mix of experts
Bid Evaluation Service: Technical CriteriaBid Evaluation Service: Technical Criteria
Passing Rate :
70%
Evaluation for Service: Financial OfferEvaluation for Service: Financial Offer
Two Types of evaluation:
1. Lowest price technically compliant – the award goes to the lowest priced offer among those that obtained 70% and above, provided the price is within the budget for the contract
2. Cumulative analysis – the maximum weight is allocated to the lowest price proposal. All other price proposals receive points in accordance with below formula
Fs = 1000 x F1/Fc (Fs = the financial score, F1 = the lowest price, Fc
= the price of the proposal under consideration)The highest score will be calculated by formula: HS = ( Ts x 70%) + (Fs x 30%)
HS = highest score, Ts = Technical score, Fs = Financial Score
UNDP OversightProvisions
Single layer review – by one committee17
Committees established at three levels
Thresholds for Committee Review
Level 1: CAP Level 2: RACP (For Country Offices Only )
Level 3: ACP
Competitive Procurement Process (except for ICs)
Any contract [3] or a series of contracts including amendments to be awarded to a vendor in a calendar year that in aggregate has a cumulative value:
Between USD 50,000 and up to the DPA (China: 150K)
Above the DPA and up to USD 2 million
HQ units : Above the DPACOs: Above USD 2 million
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Review Committees Terms of Reference
Ensure UNDP procurement general principles adhered to:
- BVFM- Fairness, integrity and transparency- Effective international competition- The interest of UNDP
Mitigate UNDP risks
Is covered by the requisite funding and programme
Check against sanctions and watch-lists
Recommend for approval or reject
Approval: CO level by CD; RACP level by Regional CPO; and ACP level by CPO
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PO and Non-PO in Atlas
PO transaction: A Purchase Order for purchasing request exceeding USD2,500 must be raised in Atlas and the transaction should be made through a PO in Atlas.
Non-PO transaction: For purchases up to USD2,500, it can be procured without a PO in Atlas but however, the expense should be reflected by Finance through a AP voucher in Atlas.
Asset Management: if the contract amount is USD 1500 and above for an asset, PO is still needed
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