Opportunities for Croatian Companies UNIDO Procurement 8 ...

Opportunities for Croatian CompaniesUNIDO Procurement

8 April 2015

Michael Dethlefsen

ChiefProcurement Services Unit

UNIDO At a Glance� Environmental Branch� Agri-Business Development Branch� Montreal Protocol Unit� Energy Branch� UNIDO Partnerships with the Private Sector

eProcurement at UNIDO� Procurement Defined� Most Frequently Procured Goods and Services� UNIDO Procurement Principles� Structure of UNIDO’s Bidding Documents� UNIDO Sourcing Channels� UNIDO’s eProcurement Portal� Average Procurement Timelines

Procurement Tips

Contents

As a technical cooperation agency , UNIDO designs/implements programmes andprojects to support its clients. It also offers tailor-made specialized programme andproject development support.

Thus, experience gained in the technical cooperation is shared with policy makers;UNIDO's analytical work helps define industrial and environmental priorities inMember States.

Assistance delivered through two core functions:

As a global forum , UNIDO generates and disseminatesknowledge related to industry and provides a platform toenhance cooperation, establish dialogue and developpartnerships.

UNIDO AssistanceUNIDO At A Glance

Global Policy and Deployment Frameworks

Green Industry Platform, RECPnet, CTCN, PAGE

Pollution Abatement Resource ManagementPollution Prevention

GREEN INDUSTRY

Resource Efficient and Cleaner Production (RECP)

Persistent Organic Pollutants (POPs) Management

Biotech Applications in Industry

Transfer of Environmentally Sound Technologies (TEST)

Large Marine Ecosystems (LME) Management

Industrial Water Productivity

Chemicals Management

Waste Management

UNIDO Environmental Branch:Green Industry

UNIDO At A Glance

Global - Through nearly 200 members of Green Industry Platform, over 50 members in RECPnet,and the countries assisted through the CTCN, PAGE and WIPO Green, EMB’s programmes arescaled up and mainstreamed throughout industry worldwide.Regional - Through partnerships with the Regional Centers of the Stockholm and BaselConventions and other selected partners. Programmes such as TEST, Waste Management andLMEs also deal with multiple countries affected by a shared environmental issue or concern.National - Country-level policies and strategies, such as for Green Industry, are developed tosupport a comprehensive shift in production patterns to a cleaner and more sustainable model.Sector - Environmental performance across the entire value chain is addressed by EMB throughthe development of sector-specific ‘greening’ strategies and programmes.City - To improve urban sustainability, EMB has organized a network of Asian eco-cities whichconduct peer reviews to learn best practices and policies from one another.Industrial Park - By clustering production sites and introducing resource productivity whilepromoting synergies between sectors and/or companies, EMB is helping to close themanufacturing loop and bring forward technology transfer through the development of eco-industrial parks.Enterprise - Through the RECP and TEST programmes, innovative approaches are introduced atthe company level to effect a continuous improvement of environmental performance whilemaintaining or increasing competitiveness.

UNIDO Environmental Branch:Intervention Levels

UNIDO At A Glance

UNIDO contributed to the elimination of 22,000 ozone-depleting potential (ODP) tonnes of annualODS consumption; approximately 1,250 industrial firms employing some 145,000 workers.

UNIDO trained more than 150,000 farmers in the use of non-chemical and chemical alternatives inthe context of phasing out methyl bromide in fumigation.

Assist countries in complying with their international obligations, mainly byphasing out production and consumption of Ozone Depleting Substances(ODS).

Identification, acquisition and application of the state-of-the art non-ODSproduction technologies covering industries such as aerosol, fumigants,refrigerants, tobacco-fluffing, foam, solvents and halon.

UNIDO Montreal Protocol Unit:Elimination of Ozone Depleting Substances

Article 5(1) Parties: HCFC ConsumptionBase level: Average 2009–10.Freeze: January 1, 2013.10 per cent: reduction January 1, 2015.35 per cent: reduction January 1, 2020.67.5 per cent reduction January 1, 2025.97.5 per cent: reduction January 1, 2030.100 per cent: reduction January 1, 2040.

UNIDO At A Glance

Refrigeration and air-conditioning Technologyconversion projectsin the refrigerationand air-conditioningsector that useHCFC-22 asrefrigerant gas,leading to lower ODSand lower GWP.

Foam The manufacture ofpolyurethane andextruded polystyrenefoams relies heavilyon HCFC-141b as afoam blowing agent.Companies in thePhilippines, Ecuador,Jordan, etc, have cutconsiderably the useof HCFC and use nownewer, safer systems.

Healthcare Companies used torely on CFCs aspropellant for theproduction ofmetered-doseinhalers (for asthma).UNIDO helpeddevise a prototypeusing an alternativetechnology that doesnot discharge ODS.

Agro-industry UNIDO designsprocedures forintroducingalternatives to methylbromide, a pesticideused in agriculture.Farmers are now morecompetitive on theinternational market byemploying greensustainable methods.

UNIDO Montreal Protocol Unit:Transfer of Technologies – Some Examples

UNIDO At A Glance

Montreal Protocol projects play a key role in promotingInclusive and Sustainable Industrial Development by:

� Avoiding high GWP alternatives ���� Green Industry

� Upgrading appliances and promoting best refrigeration practices, which result infewer leaks of substitute chemicals to the atmosphere as well as greater energyefficiency���� lower costs

� Promoting and demonstrating new, state-of-the-art technologies from prominenttechnology providers ���� technology transfer

� Coupling technological upgrades and advances with training workshops fortechnicians, which guarantee that beneficiary companies remain productive andsustainable while using green technologies � sustainability

UNIDO Montreal Protocol Projects and Inclusive and Sustainable Industrial Development

UNIDO At A Glance

UNIDO’s Partners in Promoting Climate Change Mitigation Through its Montreal Protocol Programme

� UNIDO is an implementing agency of the Climate and Clean AirCoalition (CCAC). UNIDO has already submitted proposalsfocusing on the elimination of HFCs for the consideration of theworking group. One proposal (retail sector) has been approved:� Phase-out ODS� Avoid high-GWP alternatives; and� Provide energy savings in the range 13-18%

� Projects have also been approved by the Global EnvironmentFacility (GEF) to promote energy efficiency in the Room AirConditioning (RAC) manufacturing and servicing sectors(fishery/food processing), transitioning away from HCFCs andleapfrogging HFCs.

� UNIDO is constantly investigating best alternatives in therefrigeration sector, while partnering with the private sector �

natural refrigerants.

� Potential partnership with bilateral partners.

UNIDO At A Glance

Looking Ahead: HFC Phase-Out� Growing concern: rapidly multiplying air

conditioning and refrigerationinstallations especially in developingcountries � rapid growth in the volumeof HFCs being used, since they are notcontrolled in these countries. (GWP is2,000-4,000 times the GWP of CO2).

� As an Implementing Agency of theMontreal Protocol, UNIDO has animportant role in assisting developingcountries to comply with the phase-outtargets of the Montreal Protocol.

� In order to do so, UNIDO helps todevelop, implement and manageinvestment projects that deal directlywith the conversion of industrial sectorsas well as institutional strengtheningactivities.

� UNIDO has extensive experience andtechnical expertise in the conversion ofsectors that use HFCs.

Source: The Economist, Sep 20th, 2014.

UNIDO At A Glance

Interventions

� Institutional capacity-building� Rehabilitation of productive capacities� Employment promotion and income

diversification

Achievements

� 7 Vocational training centers equippedto deliver marketable skills

� 7,000 youth trained (40% women)� 4,200 graduates created own

enterprises or got a new job� A new milk processing plant

established (150,000 liters/day)� Up to 350,000 children per year receive

milk packages

UNIDO Agri-Business Development Branch:Iraq Programme: Projects in 7 Governorates (USD 57 Million)

UNIDO At A Glance

Key approach:� - Prevent production of industrial wastes� - Manage waste in an environmentally sound manner� - De-link the intensity of energy use from economic growth� - Reduce the environmental impact of energy use� - Provide energy for the promotion of productive activities

Energy BranchUNIDO At A Glance

Industrial Energy EfficiencyEnergy Management Standards and systems optimizationSub-sector, process and product specific

Renewable EnergyOff-Grid, Mini-grids and On-Grid RE Applications in SMEs

Low Carbon Emission TechnologiesMultifocal and Integrated Projects

Global For a and PartnershipsVienna Energy Forum / SE4ALL and UN Energy

Energy BranchUNIDO At A Glance

Partnership Category : Social Investment & Philanthropy PartnershipsIndustry : Information TechnologyPartnership Objective : Providing business and IT training to enhance job creation and entrepreneurship developmentGeographic Scope : Algeria, Brazil, China, Colombia, Egypt, India, Kenya, Morocco, Nigeria, Saudi Arabia, South Africa, Tunisia, Turkey, UAE, UgandaResults:

HP Learning Initiative for Entrepreneurs (LIFE)� Set up 122 LIFE centers in 15 countries� Created over 20,000 jobs� Trained more than 50,000 students� Certified more than 270 trainers

UNIDO Partnerships:Example UNIDO-HP

UNIDO At A Glance

AGRO-INDUSTRIES, BUSINESS INVESTMENT & TECHNOLOGY PARTNERSHIPS

ENVIRONMENTAL MANAGEMENT PARTNERSHIPS

ENERGY & CLIMATE CHANGE PARTNERSHIPS

UNIDO Partnerships with the Private SectorUNIDO At A Glance

� Procurement is defined as the overall process of acquiring goods, works,and services, which includes all related functions including planning,forecasting, supply chain management, identification of needs, sourcing andsolicitation of offers, preparation and award of contract, as well as contractadministration until the final discharge of all obligations as defined in therelevant contract(s).

� The procurement process covers activities necessary for the purchase,rental, lease or sale of goods, services, and other requirements such asworks and property.

� The scope of procurement is limited to activities involving legal entities anddoes not include the selection and administration of personnel which fallunder the domain of Human Resources.

Procurement DefinedeProcurement at UNIDO

• Ozone depleting substance replacement and phase-out equipment (in the refrigeration, solvents, aerosols and foam manufacturing sector);

• Equipment for the replacement of methyl bromide measuring, checking & testing instruments;

• Laboratory, calibration and testing equipment;• Agricultural produce and materials;• Equipment for textile apparel & leather production;• Wood and timber products;• Vocational toolkits;• Chemicals;• Hydrogen production and storage;• Agricultural & food processing machinery and

equipment;• IT HW & SW equipment and supplies; • Building and construction materials and supplies;• Renewable and rural energy systems and

infrastructure• Motor vehicles, parts, accessories;• Leather and leather products, footwear;

• Office furniture and accessories;• Engines, turbines and similar machinery and

equipment (hydroelectric, others)• Security and safety equipment;• Wind mills and motors;• Solar energy systems and related equipment;• Pumps; compressors, valves, etc.;• Air conditioning equipment, controls and

machinery;• Water treatment systems, equipment and

machinery;• Ventilation systems and equipment;• Mining, quarrying and construction machinery and

equipment;• Recycling and waste management systems,

equipment and machinery;• Design, publication and training materials;• Telecommunications equipment;• Fishing testing equipment;• Metrology equipment;

Most Frequently Procured GoodseProcurement at UNIDO

• Phase-out ozone depletion in refrigeration, foam, aerosols and solvents sector (ODS, POPS)

• Phase-out of methyl bromide• Trade promotion and technology information

exchange• Standardization and laboratory accreditation • Energy Policy and management (electricity and

alternative systems)• Advisory services for environmental protection• Water management services• Training• Engineering design, research and development;• Agro related services (textile, leather, fisheries,

food…)• Revolving credit support facilities;• Office leases, maintenance and repair services;• Construction works and site management;• Technical assistance and advisory services;• Air conditioning work and maintenance;• Environmental engineering and science;

• Thematic mapping and evaluation services;• Trade and business related services;• Maintenance and repair services;• Design, publication and advertising services;• Telecommunications services;• Financial advisory services and insurance;• Freight, transportation, storage and logistics

services;• Audit and accounting services;• Laboratory testing and calibration services;• Translation services;

Most Frequently Procured ServiceseProcurement at UNIDO

• Electrical /mechanical installation works;• Consulting/advisory services on

environmentally sound technology and practices;

• Technology assessments and information exchanges;

• Repair and maintenance services;• Consulting/advisory services on agriculture

produce;• Consulting/advisory services related to

renewable energy and environmental systems and infrastructures;

• Technology conversion, retrofit and rehabilitation projects;

• Energy policy and management;• Environmental management related advice and

consulting services;• Consulting/advisory services related to

environmental protection;• Waste disposal related advice and services;• Cleaner technology promotion services;

• Water pollution related services;• Industrial surveys and consulting services;• Management advice and consultancy services;• Training and development services;• Consulting/advisory services related to

nanotechnology;• Security services;• Catering services;• Conference services;• Business seminars and conferences;• Professional & vocational training and

workshops• IT SW and internet related services.

Most Frequently Procured ServiceseProcurement at UNIDO

UNIDO Procurement Principles

Best Interest of UNIDO

Best Value for Money

Fairness, Integrity and Transparency of the

Procurement ProcessEffective Competition

eProcurement at UNIDO

� Depending on the nature, complexity and intended aggregate value of thecommitment, the contents can vary

� General Structure:

Structure of UNIDO’s Bidding DocumentseProcurement at UNIDO

� Letter of Invitation

� Instructions to Bidders

� Qualification Requirements and Evaluation Criteria

� Technical Specifications/Terms of Reference/Statement of Works

� Forms for Preparation of the Technical and Commercial Offer

� Model Contract

UNIDO Sourcing ChannelseProcurement at UNIDO

Threshold Sourcing Channel Shopping Cart RFx Evaluation PO Approval Goods/Services Receipt

Invoice Matching/Payme

nt

<€5,000

<€40,000

≤€40,000

>€40,000

>€40,000

ALL

Fast TrackProcurement

Decentralized Procurement [open

competition]

Decentralized Procurement

[waiver]

Centralized Procurement [open

competition]

Centralized Procurement

[waiver]

LTAs

AHAH AHAH AHAH Line Manager of AH

Line Manager of AH AHAH FINFIN

Allotment Holder [AH] FIN

AHAH PRS Proc OffPRS Proc Off AH + PRS Proc Off

AH + PRS Proc Off

Director, OSS

Chief, PRS

Proc Off, PRS

Director, OSS

Chief, PRS

Proc Off, PRSAHAH FINFIN

AH

=> Line Manager of AH

AH

=> Line Manager of AH

AHAH AHAH Line Manager of AH

Line Manager of AH AHAH FINFIN

AH

=> Chief, PRS

AH

=> Chief, PRSPRS Proc OffPRS Proc Off

AH +

PRS Proc Off

AH +

PRS Proc Off

Director, OSS

Chief, PRS

Proc Off, PRS

Director, OSS

Chief, PRS

Proc Off, PRSAHAH FINFIN

AH *) Line Manager of AH AH FIN

*) For LTAs requiring freight, freight quotation to be obtained from Procurement Services

Please visit: http://procurement.unido.org/. If you click on “Current Opportunities”, it will take you to …

UNIDO’s eProcurement PortaleProcurement at UNIDO

UNIDO’s eProcurement PortaleProcurement at UNIDO

How UNIDO Communicates Directly with Potential Bidders in UNIDO’s eProcurement Portal

eProcurement at UNIDO

Which Type of Organization should Companies Normally Adopt?

Sub-Contracting

What are UNIDO’s Rules on Collaborations With Local Business Partners?

Please refer to the general instructions to bidders section,requiring bidders to specify in their technical bids:

� the names and qualifications (including description ofactivities, number of personnel employed, references to theclients and completed projects) of the proposed sub-contractor(s) and/or equipment manufacturers, if any, and

� the extent and nature of such sub-contracting and/orequipment

Sub-ContractingeProcurement at UNIDO

In principle, permitted by UNIDO – and due to the complexity of procurementcases increasingly applied.

Requirements:

• Bidders need to provide written declaration indicating:- members of consortium- nomination of the leading company with whom contract would be signed- purpose of establishment of a consortium- depending on the ‘form’ of a consortium attach all ‘legal’ documents

• Once declaration has been received and accepted, separate bids by individualmember(s) of the consortium are not permitted and may be disregarded.

ConsortiaeProcurement at UNIDO

Open Competition:

Average Procurement TimelineseProcurement at UNIDO

5 Stages

� Shopping Cart Approval � Rfx publication

� Rfx publication � Opening Date (Evaluation of Bid)

� Opening Date � Acceptance of Offer

� Acceptance of Offer � Purchase Order Approval

� Purchase Order Approval � Confirmation Approval 0

5

10

15

20

25

30

35

40

SC appr - RFxpub days

RFx Pub -RFx Open

days

RFx Open -Resp. Accept

days

Resp Accept -PO appr days

PO Appr -Conf Appr

days

Example: Integrated Food Security Project in Kassala State, Sudan

Average Procurement TimelineseProcurement at UNIDO

� Shopping Cart Approval � Rfx publication, (3 days)

� 7 Offers received

� Lowest cost, technically acceptable offer � € 21,500 (Earthmoving Services Limited, Great Britain)

� Acceptance of Offer � Purchase Order Approval, (5 days)

� Purchase Order Approval � Confirmation Approval 107 days)

0

5

10

15

20

25

30

35

40

SC appr -RFx pub

days

RFx Pub -RFx Open

days

RFx Open -Resp.

Accept days

RespAccept - POappr days

PO Appr -Conf Appr

days

� Use information/publications available on UNIDO’s website www.unido.org andwww.procurement.unido.org or email [email protected], our helpdesk

� Register on the UNIDO eProcurement portal and UN Global Marketplace (UNGM)

� Monitor procurement opportunities on https://procurement.unido.org/

� Feel free to respond when invited to submit a bid, even if you should not be in a position to participate

� Study bidding documents carefully and ask for clarification where necessary

� Bids must meet all requirements; if you cannot meet all requirements, consider to sub-contract or form ajoint-venture/consortium

� Submit required certificates, catalogues, etc in the correct formats

� Clearly mark and sign bids as required

� Ensure sufficient time to prepare offers carefully

� Prepare the offer to facilitate the work of the Procurement Officer

� Read UNIDO‘s generic model contract and general conditions carefully

� Be aware of the four underlying procurement principles that guide the overall evaluation process

� Understand the ethics/confidentiality provisions

� Meet deadline for submission of bids

Procurement Tips

Thank you for your attention!