UNDP Procurement Strategy
UNDPProcurementStrategy2015–2017U N I T E D N AT I O N S D E V E LO P M E N T P R O G R A M M E
Local economic development in Niger.
A S T R AT E G I C F U N C T I O N E S S E N T I A LTO D E L I V E R I N G R E S U LT S G LO B A L LYUNDP’s 2015-2017 Procurement Strategyrepresents a meaningful commitmentto UNDP’s mission of helping countriesachieve the simultaneous eradicationof poverty and significant reduction ofinequalities and exclusion, as articulatedin its Strategic Plan. The fulfillment ofUNDP’s vision and mandate requires theefficient and effective provision of goodsand services, making procurement astrategic function essential to deliveringresults globally.Cover: Fishermen in Digha Beach, West Bengal.
1Green, responsibleand inclusiveUNDP will incorporate sustainability, the social costs ofSUSTAINABILITYSOCIAL COSTSOF CARBONEMISSIONKEYPURCHASINGCRITERIAcarbon emission, women’s empowerment and South-SouthCooperation as criteria in key purchasing decisions, shiftingfrom a narrow focus on “price” to a calculation based onthe “total cost of ownership throughout the life cycle ofproducts and services.”Through the reorientation of its procurement strategy,UNDP will make a significant investment in renewableenergy solutions and energy-efficient technologies suchas solar cooking stoves and hybrid TSolar energy products in Costa Rica.2U N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7Solar appliances have been purchased andprepositioned for immediate deployment incrisis situations where solar power would haveadvantages over traditional or fossil-fuel-runappliances. In Ebola-affected countries, UNDPCOs were able to switch over to solar power,ensuring the grid would serve hospitals first.Solar arrays were also purchased and deployedto power clinics. Solar lanterns are critical forrespondents of natural disasters, as powerinfrastructure is exposed and frequently greatlydamaged in earthquakes and storms.
Microfinance projects in Madagascar.2Procurement:A UNDP cornerstoneProcurement accounts for nearly two thirds of all UNDPdelivery—and the demand for procurement services isgrowing. In the past 3 years, procurement volumes havegrown significantly in the health, elections, sustainableenergy and crisis-response sectors. As a strategic functionProcurement accountsfor nearly two thirds of allUNDP expendituresof the Organization, procurement must be engaged in theearly stages of project design to ensure efficient deliveryand mitigate risks.PROCUREMENTUNDP procurement shall mutually reinforce the principlebased framework for business contained in the UN GlobalCompact, encouraging its vendors to adopt sustainable andsocially responsible policies aligned with its ten principlesin the areas of human rights, labor, the environment andUNDPEXPENDITURESanti-corruption.U N D P P R O C U R E M E N T S T R AT E G Y 2015 - 20173
Local development projectsdeliver clean water in Laos.3Clean supply chainsUNDP will developmonitoring mechanisms,including assessments andspot checks, to promotevendor compliance.UNDP cannot inadvertently compromise its own missionand credibility by allowing supply chain abuse by its ownsubcontractors. Child exploitation, disempowerment, abuse,and forced labor cannot go undetected and unmitigatedwithin the UNDP supply chain. Inaction is complicity.UNDP has vast and complex supply chains, which ofteninclude subcontractors, wholesalers and manufacturers inmany countries. In order to ensure adherence to nationallabor legislation, and that the prohibitions on child andforced labor are observed, UNDP will develop monitoringmechanisms, including assessments and spot checks, topromote vendor compliance.4U N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7
4Purchasing innovationUNDP’s commitment to innovation must be reflected in itssourcing strategies.Rethinking specs: By requesting known technicalCOLLABORATIONADAPTABILITYspecifications and supply sources that inherentlyfavor existing products and services over innovations,procurement practices have not always adequately nurturedinnovation. UNDP will include, where advantageous,performance-based technical specifications that are openended with regard to specific technical solutions, leavingINNOVATIONroom for innovation from the private sector, while at thesame time allowing UNDP to define the broad frameworkof requested solutions.Crowd-Sourcing and prizes are a pre-commercialprocurement stimulus for innovations that do not yet have aFORWARDLOOKINGCUSTOMSOLUTIONSnear-to-the-market solution. UNDP will work collaborativelywith providers of promising competing innovations toprovide support in the actual testing and iteration phases.PSO’s new approach to contractor sourcing reinforces theinclusion of innovative products and services, recognizingthat sourcing companies and products for innovationrequire a different set of tools, award criteria and selectionprocesses than the classical procurement procedures.To continue as a forward-looking, global role model, UNDPmust continue purchasing and implementing innovativetechnologies and solutions. Replacing kerosene-burningheaters with durable solar heaters is an example of theUNDP will focus onperformance-basedtechnical specificationsthat are open-endedwith regard to specifictechnical solutionswin-win multiplier effect of pairing progressive procurementstrategies and innovation in which improvements incontamination, safety, operational and cost-efficiency, health,and physical safety are simultaneously achieved. Yet, UNDPhas been careful not to apply a “one-size fits all” methodology,and has taken care to only switch the kerosene-burningheaters for solar heaters where advantageous.U N D P P R O C U R E M E N T S T R AT E G Y 2015 - 20175
5Better Integrationinto ProgrammesDEEPERINTEGRATION OFPROCUREMENTHEADQUARTERS LEVELAs a prerequisite of effectiveproject and risk management,and given its importance toUNDP’s overall performance,procurement will be a part ofproject design and budgetsREGIONALLEVEL COUNTRYOFFICE LEVELUNDP Procurement will be more fully integrated intoprogramme and project design at the country office,regional and HQ levels. As a prerequisite of effectiveproject and risk management, and given its importanceto UNDP’s overall performance, procurement will be apart of project design and budgets. Guidelines will bepublished that establish well-defined roles for procurementand underline its potential as a strategic tool. SpecificallyUNDP Procurement should be engaged in the formulationof Country Programme Action Plans (CPAPs), CountryProgramme Documents (CPDs), and Annual Work Plans(AWPs) for greater collaboration and accelerated delivery.Planning, when jointly executed by programme andoperations staff, helps deliver improved developmentresults on behalf of UNDP’s beneficiaries, ensuring thatprocurement activities contribute to the achievement ofproject outcomes by being conducted in a timely mannerand at a reasonable cost. UNDP Procurement will enable6U N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7
Assembling gymequipment at theGimpack plant inMexico City.these consultations and discussions through policies andtools, and continually collect and analyze data in order toprovide proactive support to UNDP Business Units.EXTERNALThe development of a Best Practice SustainableProcurement and Contract Management guide for projectmanagers is planned. UNDP will consider an award schemefor “Best Sustainable Project Management Practices”.Presently, UNDP continues to set high professionalizationstandards, focusing on external training and certificationprogrammes. This approach will be supplementedby a corporate training package to better integrateTRAINING &CERTIFICATIONPROGRAMMESthe perspectives of UNDP programme managers andprocurement professionals on the strategic use ofprocurement. The training will enable programme staffto understand the importance of key procurement stagessuch as planning, sourcing and contracting as well as riskINTERNALmanagement and monitoring.U N D P P R O C U R E M E N T S T R AT E G Y 2015 - 20177
6Stronger partnerships,larger impactPublic-private partnerships allow for an increased globalimpact, opportunities for mutual learning, pursuit ofINCREASEDGLOBAL IMPACTcommon interests, coordinated policy formulation, andenhanced lobbying capabilities. UNDP will continue toforge strong, mutually beneficial partnerships with privateentities committed to the strategic use of procurement inPURSUIT OFCOMMONINTERESTSMUTUALLEARNINGthe domains of innovation, corporate social responsibilityand greening.Public-private partnerships will also keep UNDP at thecutting edge of Best Practices through interconnectednessand dialogue. An organization disconnected from ATIONENHANCEDLOBBYINGCAPABILITIESCUTTINGEDGE8U N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7rapidly changing world could suffer great competitivedisadvantage, and be poorly positioned to fulfill its mandate.UNDP has laid the foundation fora successful joint UN initiative forgreen procurement in the healthsector: an initiative that attractedthe Global Fund, UNITAID andGAVI as partners in addition toUNFPA, UNOPS, WHO, UNICEF,UNEP and UNHCR. Similar sectorspecific initiatives, for instanceon renewable energies, couldbe conceived.
Robust partnerships with governments have allowedUNDP to aid in capacity building for governmentalstructures—through support to National ImplementationVoter identification inthe Democratic Republicof the Congo.(NIM), for example. An assessment system of governmentprocurement capacity and a new service-line that positionsUNDP as a provider of first choice to governments forthe build-up of procurement capacity is planned forthe mid-term. As is befitting of a development partner,robust governmental partnerships should be sought andmaintained to improve the assessment of procurementcapacity as well as a strengthening of overall procurementcapacity, for which UNDP could be a key player.UNDP Procurement will be fast-tracked and furtherstreamlined to the needs of crisis response efforts toaffected governments and populations. Effective andimmediate availability of goods and services critical tocoordinated recovery assistance shall be ensured. PSO willpreposition stock in humanitarian response depots, createand maintain rosters for on-call experts, and collaboratewith UNICEF and WFP to ensure quick turn-arounds.Continued integration with the UN-system is fundamentalto UNDP’s procurement strategy as it operates within theUN-system’s “Delivering As One” approach. Initiatives like theSecretary General’s “Greening the Blue” and UN Operationscarbon neutrality are Best Practice examples of how thepower of the UN and its procurement structure can beleveraged for real-world impact. In addition, UNDP willengage, on a UN system-wide basis, in a dialogue on howbest to incorporate the social cost of carbon calculations inprocurement decisions.Continued integrationwith the UN-system isfundamental to UNDP’sprocurement strategy asit operates within the UNsystem’s “Delivering AsOne” approachUNDP procurement will continue to play a key role incontributing to the High Level Committee of Management(HLCM) and the United Nations Development Group(UNDG), engaging in dialogue and initiatives toharmonize policy.U N D P P R O C U R E M E N T S T R AT E G Y 2015 - 20179
Increasing rice cultivation in Viet Nam.7Transparency, Integrityand AccountabilityUNDP was ranked #1 in the World Index of Transparencyby the International Aid Transparency Initiative (IATI)TRANSPARENCYin 2014, representing its long-standing commitment toaccountability. Open.UNDP.org, UNDP’s online portalprovides open access to data on more than 10,000 active CRITICALFEATURES OFPUBLIC SECTORPROCUREMENTprojects and publishes over US 5.8 billion in project data.As a member of IATI since its inception in 2008, UNDPwill continue to champion outreach efforts with partnercompanies and UN agencies to ensure the new aidINTEGRITYtransparency standards are implemented.UNDP shall seek and maintain business relationships withvendors who share the values of the Organization. To this end, fraud and corruption perpetrated against UNDP shallbe confronted, firmly and fairly, through a robust vendorsanctions framework, and prevented through thoroughACCOUNTABILITY10U N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7due diligence procedures in sourcing.
Transparency is directly related to UNDP fundamentalvalues such as institutional effectiveness andaccountability. Fairness, integrity and transparencyensure that competitive processes are fair, open, andrules-based. All potential vendors should be treatedequally, and the process should feature clear evaluationcriteria, unambiguous solicitation instructions, realisticFairness, integrity andtransparency ensurethat competitiveprocesses are fair,open, and rules-basedrequirements, and rules and procedures that are easy tounderstand. Institutional effectiveness is central to thetransformation that UNDP envisions in its 2014-2017Strategic Plan.As a step towards effective international competition,UNDP will provide all potential vendors with timely andadequate information on UNDP requirements, increasedaccess through new e-tendering systems, as well as equalopportunity to participate in procurement actions, andrestrict them only when it is absolutely necessary to achieveEFFECTIVEINTERNATIONALCOMPETITIONUNDP development goals.Peoplesoft e-Tender will be used forall procurement through the CentralProcurement Unit as well as Copenhagenand Kuala Lumpur. Benefits of e-tenderinginclude automation and streamlining, andfull integration in ATLAS. This results in thecapture of valuable data, an audit trail, apaper-less process, and increased bidderconfidence in UNDP tender processes.A new integrated results and resources framework isintroducing more effective monitoring of how all UNDPoffices achieve results and spend resources. To upholdquality assurance and foster organization-wide consistency,it includes core indicators and measurement guidance.UNDP’s first integrated budget has simplified and mademore transparent the management of its differentTIMELY ANDADEQUATEINFORMATIONON UNDPREQUIREMENTSINCREASEDEQUALACCESSOPPORTUNITY TOTHROUGH NEW PARTICIPATE INE-TENDERING PROCUREMENTSYSTEMSACTIONSUNDP’s first integratedbudget has simplified andmade more transparentthe management of itsdifferent revenue streamsrevenue streams.U N D P P R O C U R E M E N T S T R AT E G Y 2015 - 201711
8Measuring ImpactUNDP will develop areview process thatverifies the extent towhich corporate socialand environmentalresponsibility arerespected by allsubcontractorsBenchmarking will continue to drive forwardcontinuous business improvement. It is critical that UNDPbenchmarks itself against other organizations operatingin equivalent contexts. Procurement policies of otherorganizations will be continuously reviewed by UNDP withthe aim of incorporating best practices into UNDP.In keeping with the UNDP Strategic Plan, whose vision willrequire institutions to meet benchmarks for organizationaleffectiveness that match or exceed the highest standardsset in its peer community, UNDP will develop a reviewprocess that verifies the extent to which corporate,social and environmental responsibilities are respectedby all subcontractors. In addition, UNDP will reviewenvironmental certifications in the procurement processes.UNDP will review existing certificationschemes and decide to what extentsuch schemes will be adapted bythe organization, i.e. ISO certificationand standards on environmentalmanagement systems, participation inself-reporting schemes on green-housegas emissions (such as the Carbondisclosure project).UNDP will continue to develop the“Green Procurement Index Health,” usehealth products as a pilot and extend thisconcept into other sectors, providing anobjective measurement of sustainabilityin the organization. This is the first stepin a broader commitment to indexinggreen initiatives.Likewise, procurement departments and the performance ofprocurement professionals will be measured and rated alsoaccording to benchmarks on green and CSR procurement.PSO will continue to regularly measure progress insustainable procurement and report its findings to theAnnual Statistical Report on United Nations Procurement.12U N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7
Adult literacy class in Burkina Faso.9ImplementationIn implementing better procurement services to supportBETTERDELIVERYproject delivery, UNDP aspires to deliver a demanddriven, scalable, self-financing service in support of UNDPProgramme Delivery needs. The implementation supportstructure will have, at its core, three main drivers: accelerateddelivery, better client support and better informationand systems.MAINDRIVERSBetter Delivery is paramount to UNDP’s continued success.UNDP will accelerate delivery through the use of Long TermAgreements, pre-positioned goods and faster sourcingprocesses, as well as continuous business improvementof UNDP procurement methods and tools. Systematicreviews of key policies, such as those that govern third partysuppliers and partners, will be undertaken frequently basedBETTER CLIENTSUPPORTBETTERINFORMATIONAND SYSTEMSon feedback from country offices.U N D P P R O C U R E M E N T S T R AT E G Y 2015 - 201713
Better Client SupportAs one of the largest buyers in the UN family and givenThere will be major efforts to expand theglobal architecture of Long Term Agreements(LTAs) in order to reduce the lead time inprocurement, and to avoid parallel andrepetitive bidding processes by separateUNDP business units. UNDP’s overallpercentage of procurement contracted inthe framework of LTAs will be increasedfrom 20% to 40%, bringing it more in linewith the practice of other UN organizations.Increased thresholds for micro-purchasing aswell as the introduction of e-tendering andcentralized Atlas vendor management willlead to further efficiency gains and reinforceUNDP’s enabling role.the decentralized nature of UNDP, it is critical that timelyand relevant advice is available to Country Offices onprocurement issues. Through the implementation of theService Delivery model, HQ and Regional ProcurementAdvisors will be available to support Country Offices indelivering on their portfolios.Better Information and SystemsProcurement decisions in UNDP should be based on carefuldata analysis, revealing spending and risk patterns. Theglobal establishment of long term agreements should beinformed by accurate spend analysis, and value for moneyand simplified order processing should be primary drivers inrestructuring procurement behaviours.By using a Standardized Delivery Agreement, UNDPProcurement Services will clearly define how procurementservices are delivered to country offices. These agreementswill include scope of work, roles and responsibilities as wellas timelines, and give the client the opportunity to provideEFFICIENCYGAINSTHROUGHfeedback on performance once the agreement is concluded.Strengthening SystemsNew technology is critical to delivering in a cost effectiveand robust manner and to assist in mitigating risks byensuring separation of duties and integrated documentchains. Multiple projects, including E-tendering, theE-Consulting Platform and updated procurementE-TENDERING14INCREASEDTHRESHOLDSFOR MICROPURCHASINGCENTRALIZEDATLAS VENDORMANAGEMENTU N D P P R O C U R E M E N T S T R AT E G Y 2 0 1 5 - 2 01 7dashboards will be delivered within the framework of thisprocurement strategy.
10Assessing andBuilding CapacityUNDP has an extensive network of partners who worktogether to achieve development outcomes. Governmentpartners, in particular, can be strengthened by applyingindustry standard assessments and capacity building effo
Procurement accounts for nearly two thirds of all UNDP delivery—and the demand for procurement services is growing. In the past 3 years, procurement volumes have grown significantly in the health, elections, sustainable energy and crisis-response sectors. As a strategic function of the Organization, procurement must be engaged in the
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Strategic Procurement for Innovation Vassilis Tsanidis Dr.Jur f. National Expert on Innovation Procurement in the EU A. STRATEGIC PROCUREMENT –2 Innovation Procurement Green/Circular Procurement Social Procurement . 10-11-2020 2 EU Public Procurement Directives (2014/24 , 2014/25)
Procurement For GoJ purposes, Public Sector Procurement is the acquisition of goods, services and works, by any method, using public funds, and executed by the Procuring Entity or on its behalf. Procurement Contract A contract between the Procuring Entity and a Broker/Insure resulting from procurement proceedings. Procurement Officer A person with the authority to conduct procurement .
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