THE BAVARIAN BUSINESS COMMUNITY “How to do Business with the U.N. System” Chris Hesling Director, Office of Procurement Services Overview of Presentation • • • • • Overview of the United Nations System Procurement Statistics Registering as a supplier; UN Global Marketplace UN Procurement Procedures Practical Tips 12/7/2005 2 The UN System • The United Nations is made up of a variety of organizational entities (agencies, organizations, commissions, programmes, funds, etc). • Each entity has a distinct and separate mandate (covering the political, economic, social, scientific and technical fields). 12/7/2005 3 The United Nations System of Organisations GENERAL ASSEMBLY SECRETARIAT TRUSTEESHIP COUNCIL INTERNATIONAL COURT OF JUSTICE UNRWA UNIDIR SECURITY COUNCIL PEACEKEEPING MISSIONS MONUC UNMEE UNAMSIL MINURSO UNTAET UNMOGIP UNMIBH UNFICYP UNOMIG UNMIK UNMOP UNDOF UNIKOM UNIFIL UNTSO ICTR / ICTY ECONOMIC AND SOCIAL COMMISSION REGIONAL COMMISSIONS ECA ECE ECLAC ESCAP ESCWA FUNDS & PROGRAMMES SPECIALIZED AGENCIES UNICEF UNDP UNHCR UNU UNCTAD UNITAR UNDCP INSTRAW UNEP WFP UNFPA UNICRI OHCHR UNCHS UNOPS UNSSC UNRISD ILO FAO WTO UNESCO ICAO ITU IMF WMO IMO IFAD WIPO UNIDO WHO World Bank UPU IAEA OPCW CTBTO 12/7/2005 4 The United Nations System of Organisations EACH ORGANISATION…… • has its own special requirements for goods and services • conducts its own procurement activities • follows common procurement rules and regulations • constitutes a separate and distinct customer 12/7/2005 5 Total UN Procurement of Goods and Services (UN System) 2003 6000 USD Millions 5000 4000 3000 2000 1000 0 1999 2000 2001 2002 2003 Year Goods Services 12/7/2005 6 Major Items procured by the UN System Equipment Services • Food • Security Services • Pharmaceutical Supplies • Outsourced Personnel Services • Vehicles • Engineering Services • Computers and Software • Construction • Shelter and Housing • Corporate Services • Telecommunications Equipment • Freight Services • Printing Services and • Laboratory Equipment • Chemicals • Consultancy Services • Building Materials • Telecommunication Services Equipment Rental 12/7/2005 7 Procurement Volume 2003 15 Major UN Agencies USD Millions Organization Value WFP 1057.88 UN/PS 891.85 UNDP 732.03 UNICEF 709.31 UNOPS 383.01 FAO 376.50 PAHO 211.97 UNRWA 120.61 WHO 117.53 UNFPA 94.77 UNHCR 90.66 IAPSO 89.86 ICAO 69.77 IAEA 68.72 WIPO 66.03 12/7/2005 8 IAEA Procurement Value • 2003 $68.7m • 2004 $70.9m • 2005 Approx $90m+ 12/7/2005 9 IAEA Procurement Value - 2004 • Total Spend of $70.9m » Global Spend • Goods/Products $54.5m • Services $16.4m German Spend $8.5m (15.6%) $1.38m (8.4%) 12/7/2005 10 What is required to supply the UN? • Market knowledge (UN structure and culture) • Suitable products / services • Export experience / references • Languages (employees, documents) • Competitive prices (tight calculation) • Networks / partner (country knowledge, after sales services) • Capacities (financial, personnel) • Flexibility and accuracy • Persistence, endurance, patience 12/7/2005 11 Step-by-step towards success • • • • • Extensive market research • • • • • Bid according to tender documents / rules Identification of relevant UN Organization Registration Thorough information about procurement practices Obtain systematic / regular information about current procurement activities / opportunities Observe norms and standards Seek clarification in case of questions Make contact with relevant procurement personnel Performance 12/7/2005 12 How to Identify Business Opportunities Web Based Information Resources Available from www.iapso.org; • • • • The Annual Statistical Report The General Business Guide (GBG) Practical Tips-Doing Business with the UN Procurement notices 12/7/2005 13 Business Information The Annual Statistical Report • UN procurement by country • UN Agency procurement by country, commodity or • • service Purchase orders and Contracts (over USD 30,000) placed by agency, by country of vendor, value and description of goods or services Top Ten items procured by Agency The General Business Guide • Lists all UN Organizations, fields of activity, contact persons, procurement activities and requirements and registration procedures Available from www.iapso.org Both publications are updated on an annual basis 12/7/2005 14 UN Procurement Market Online Portal http://unbiz.un.int • • • • • • • Guide to websites of UN Organisations & procurement offices Tender notices Contract awards Contacts Procurement plans and statistics Sample contracts Vendor lists Development Business • • UN publication available in paper format or at www.devbusiness.com Annual Subscription Fee from $550 12/7/2005 15 UN Global Marketplace Access • Access at www.ungm.org • On-line registration • Free of charge Re-launched 2004 • Supplier evaluation • Improved search function • More valuable tool • Future plans 12/7/2005 16 Eligibility Criteria for UN Global Marketplace Registration 1. Completion of online registration form on www.ungm.org 2. General acceptance of UN General Terms and Conditions 3. Generally prepared to accept international /national standards 4. Approval by at least one UN agency 12/7/2005 17 How to register on the UN Global Marketplace 1. Register as New Supplier on www.ungm.org 2. Login details will be sent by email 3. Login and complete 13 step online registration form 4. Submit registration form online 5. Send additional documentation to agencies requesting it. 6. Approval by at least one UN agency 12/7/2005 18 UN Global Marketplace Supporting Agencies • IAEA - International Atomic Energy Agency • IAPSO - Inter-Agency Procurement Services Office • ILO - International Labor Organisation • ITC - International Trade Center • UNDP - United Nations Development Program • UNESCO - United Nations Educational, Scientific and Cultural Organization • UNFPA - United Nations Populations Fund • UNHCR - United Nations High Commissioner for Refugees • UNICEF - United Nations Children Fund • UNIDO – United Nations Industrial Development Organization • UNOPS - United Nations Office for Project Services • UN/PS – United Nations Procurement Services • UNRWA - United Nations Relief and Works Agency • WFP - World Food Program • WIPO - World Intellectual Property Organisation Note: UNGM does not replace a supplier’s normal marketing efforts 12/7/2005 19 Useful addresses Improving supplier information and access: • • • • • • • • • • • • • • • • • • • www.unbiz.un.int www.ungm.org www.unsystem.org www.iaea.org www.iapso.org www.ilo.org www.intracen.org www.un.org/Depts/ptd/ www.unesco.org www.unfpa.org www.unhcr.ch www.unicef.org www.unido.org www.unops.org www.undp.org www.unrwa.org www.wfp.org www.wipo.int [email protected] (Hyperlinks to UN Agencies) (UN Global Marketplace) (UN Web Site Locator) (International Atomic Energy Agency) (Inter-Agency Procurement Services Office) (International Labour Organisation) (International Trade Centre) (UN Procurement Services) (UN Educational, Scientific and Cultural Organization ) (UN Populations Fund) (UN High Commissioner for Refugees) (UN Children’s Fund) (UN Industrial Development Organisation) (UN Office for Project Services) (UN Development Program) (UN Relief and Works Agency) (World Food Programme) (World Intellectual Property Organisation) (e-mail based helpdesk service) 12/7/2005 20 Procurement Procedures Common Guidelines for UN Procurement Procurement activities of the UN system are based on the following • The objectives of the UN Organisation concerned • Fairness, integrity & transparency through competition • Economy & effectiveness • Best value for money These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract Please refer to the General Business Guide (GBG) at; www.iapso.org 12/7/2005 21 Procurement Procedures Common General Terms and Conditions • Cover both the procurement of goods and the contracting of services. • Most provisions are common within the UN system, however some provisions may vary in text depending on individual agency requirements. • Potential suppliers are encouraged to familiarise themselves with the UN terms and conditions. Please refer to the General Business Guide (GBG) at; www.iapso.org 12/7/2005 22 Types of Solicitation i Expression of Interest (EOI) Written communication by a supplier to provide information about its products, resources, qualifications and experience i Request for Quotation (RFQ) Less formal solicitation, lower-value, standard specifications, readily available on the market i Invitation to Bid (ITB) Formal solicitation, lowest evaluated price, compliant and technically acceptable i Request for Proposal (RFP) Formal solicitation, requirements possibly met in a variety of ways, overall best solution will win the award (Combining technical solution and price considerations) -- not necessarily the lowest price 12/7/2005 23 Thresholds – type of solicitation • up to 30,000 USD q relatively informal q Requests for Quotation • 30,000 – 100,000 USD * q Formal q Requests for Quotation q Shortlist q Minimum 3 potential bidders • above 150,000 USD q Formal Sealed Bid q advertised (on the web) generally larger shortlist (minimum 6 potential bidders) q Invitation to Bid or Request for Proposals * Procurement Authorization Committee review applies above $70,000 12/7/2005 24 Bid Evaluation Criteria • • • • • • • • • • • Acceptance of UN payment terms Delivery Terms (INCOTERMS 2000) Delivery Time Technical Requirements Recognized International/National Standard Supporting Documentation Proven Production Capacity & Financial Strength Warranty Conditions Appropriate After-sales Service Previous Contract References Price 12/7/2005 25 How are Shortlists Compiled? • Competitive suppliers of previous procurement • Suppliers of the required goods or services, found on the UN Global Marketplace database, or other public databases • Through calls for Expression of Interest • Search of World Wide Web • Trade Missions, Chambers of Commerce • Exchange with other UN Agencies 12/7/2005 26 Practical Tips for Potential Suppliers General • Always respond to bid invitations - if you cannot offer inform the UN Organisation accordingly Bid Preparation • • • • Study bid documents, conditions and requirements carefully In case of uncertainty - ask for clarifications Ensure that your offer meets ALL bidding requirements Technical specifications: read carefully and meet the minimum requirements • Quality statements: Norms and international/national standards 12/7/2005 27 Practical Tips for Potential Suppliers (cont.) • Alternative proposal may be provided (give brief explanation) • Submit bid, catalogues etc in requested language • Prepare bid to facilitate work of purchasing officer • requested format • use submission forms Bid Submission • Meet deadline for the submission of bid Remember • Take advantage of UN Agencies websites 12/7/2005 28 Summary • Make use of information/publications available at www.iapso.org • Download • Annual Statistical Report • General Business Guide • Practical Tips • Register on the UN Global Marketplace and other relevant UN agencies • Maintain normal marketing activities Doing business with the UN system is not any more complex than any other public procurement entity • Regularly scan procurement opportunities • UN Agency Websites • UN Development Business • Express interest, bid and perform! 12/7/2005 29 Thank you all & good luck! 12/7/2005 30