How does UNDP do business
Depending on the nature and size of the project and its procurement elements, UNDP may use any of the following competitive methods 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 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 open international competition 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 in other words obtains the best value for money. All methods of procurement irrespectively must be open and fair to all interested offerers to the extent possible.
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, open international competition 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 Inter-Agency Procurement Services Office’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. United Nations Development Business 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. It is published both online and in paper form. The paper version is printed twice monthly and the online version is updated several times a week.
Limited International Competition
Limited international competition 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. Limited international competition is appropriate where open international competition is unsuitable, exigent circumstances persist or the global market retains a limited availability of the required goods, civil works or services.
Local competition, unlike the 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.