Presented by Niels Ramm (UNGM) and Susan Struck (HLCM PN) Athens, November 2008 DOING BUSINESS WITH THE UNITED NATIONS (UN)

Presented by

Niels Ramm (UNGM) and Susan Struck (HLCM PN)Athens, November 2008

DOING BUSINESS WITH THE UNITED NATIONS (UN)

Overview of the United Nations

UN Procurement Statistics

How to Identify Business Opportunities

General UN Procurement Procedures

How to do Business with theUnited Nations (UN)

Global Compact & Ethics

Overview

Overview

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).

…………………………………………..

….

Le Nazioni Unite nel mondoLe Nazioni Unite nel mondo

UNAIDS

OPCW

Copenhagen

UNOPSUNDP/PSOUNICEF Supply DivisionUNFPA Procurement Unit

UNEP

EACH ORGANISATION . . .

• has its own special requirements for goods and services

• may conduct its own procurement activities

• follows, in general, common principles for procurement rules and regulations

• constitutes a separate and distinct customer/partner

Overview

Statistics (UN Procurement System)

Total UN Procurement of Goods and Services (UN System) 2007

0

2000

4000

6000

8000

10000

12000

2002 2003 2004 2005 2006 2007

Year

US

D M

illio

ns

Goods Services

4,6% more services than

goods

Ten Major Countries of Supply to the UN System 2007

0

100

200

300

400

500

600

700

800

US

D M

illio

ns

Major Items procured by the UN System

Goods

• Food

• Pharmaceutical Supplies

• Vehicles

• Computers and Software

• Shelter and Housing

• Telecommunications Equipment

• Laboratory Equipment

• Building Materials

Services

• Security Services

• Outsourced Personnel Services

• Engineering Services

•Construction

•Corporate Services

•Freight Services

•Printing Services and Equipment Rental

•Consultancy Services

•Telecommunication Services

1. UNDP 2424

2. UN Sec 1904

3. WFP 1808

4. UNOPS 659

5. PAHO 294

6. UNESCO 231

7. UNFPA 224

8. UNRWA 180

Volume of Procurement in 2007 of the 15 Principal Agencies

9. IAEA 131

10. UNHCR 128

11. UNDP/IAPSO 106

12. FAO 85

13. ILO 70

14. UNOG 69

15. UNIDO 55

Procurement from Greece, USD2.78m (0.03%)

Procurement Goods and Services from Greece by Agency 2007, USD thousand

UNDP 1.63

WFP 0.58

UNON 0.25

UNOPS 0.09

UNV 0.06

UNOG 0.04

UNESCO 0.03

UNFPA 0.03

UNRWA 0.03

UN Sec 0.02

FAO 0.02

Goods

• Power cables• Agricultural Equipment• Electrical Equipment• Water Storage Tanks

Services • Leasing and Renting

Services• Environmental Management• Trade Facilitation

How to Identify Business Opportunities

Market knowledge― UN structure, procedure and value

Export experience / references― Global and/or local operation

Languages― Employees, documents

Competitive prices – Quality― International competition – best value

Are you ready to supply to the UN (1/2)?

Are you ready to supply to the UN (2/2)?

Networks / partner― Country knowledge, after-sales services

Capacities― Finance, personnel

Flexibility and accuracy― Operational tempo

Persistence, endurance, patience

The Annual Statistical Report

Web-Based Information

The General Business Guide (GBG) Practical Tips — Doing Business with the UN

Towards one single commercial and procurement portal: UN Global Market Place (UNGM)

Additional information: www.ungm.org

Procurement notices

Value-Added Service: Receive relevant procurement notices directly in your Inbox, USD250 annually

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.ungm.org

Both publications are updated on an annual basis

Step-by-Step Towards Success

Extensive market research

― Planning acquisition, contract award, UN information

Identification of relevant UN Organization

― Match capacity and requirements

Registration — United Nations Global Marketplace

― Mandatory for majority of UN agencies

Thorough information about procurement

― Principles, procedures

Obtain systematic / regular information about current procurement activities / opportunities

― Keep yourself up-to-date

UN Procurement Procedures

Common Guidelines for UN Procurement system

Procurement activities of the UN system are based on the following principles:

• Advancing the interests of the organisation• Obtaining value for money• Ensuring probity through inter alia, fairness, integrity, transparency and

effective competition• Accountability for outcomes

These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract

Competitive suppliers of previous procurement

― Past performance

Suppliers of the required goods or services, found on the UN Global Marketplace

― Codification

Through calls for Expression of Interest (EOI)

― Notices

Search of World Wide Web

Trade Missions, Chambers of Commerce

Exchange with other UN Agencies

How are vendors shortlist compiled? (Sourcing)

Supplier Criteria

Minimum of 3 years experience in relevant business line Export Experience (where applicable) Certified financial reports for the past 3 years

(Annual turnover + annual profit + company’s own capital) References, 3 recent contracts, goods/services supplied, dates and client

details Quality Certification

General Terms and Conditions Supplier Code of Conduct

the value of the procurement

the nature of the goods and services to be procured

critical dates for delivery

How is the procurement method decided?

Up to 30,000 USD **- Informal, simplified acquisition procedure- Requests for Quotation (RFQ)- Lowest priced, technically acceptable bidder or best value bidder (evaluated).

• Above 30,000 USD** - Invitation to Bid (ITB) and Request for Proposal (RFP)

- Open and formal: advertised (on the web) generally larger shortlist (minimum 6 potential bidders, 3 to comply)- Public bid opening - Review and Recommendation by Contract Committees

Thresholds/Award for types of solicitation

** Thresholds vary

Expression of Interest (EOI)Written communication by a supplier to provide information about its products, resources, qualifications and experience

Request for Quotation (RFQ)Less formal solicitation, lower value, standard specifications, readily available on the market

Invitation to Bid (ITB)Formal solicitation, lowest evaluated price, compliant and technically compliant

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

Types of Solicitation

Long Term Agreement (LTA)/Frame Agreement A long-term agreement based on ITB or RFP process 2-4 years periodPotentially more than one LTA for same goods/serviceAdvantage: Shortens delivery time by shortening process

Direct ContractingException to the ruleIn case of extreme emergencySole sourceIf competitive bidding process has failed for valid reasonVery stringent controls and has to be well justified

Types of Solicitation

Cover both the procurement of goods and the contracting of services.

Most provisions are common within the UN procurement system, however some provisions may vary depending on individual agency requirements.

Familiarise yourself with the UN Terms & Conditions (UNGCC).

Common General Terms & Conditions

The Global Compact

“

Business should:

1. Support and respect the protection of internationally proclaimed human rights (policies, basic working conditions, right to health/privacy, workplace health and safety)

2. Make sure that they are not complicit in human rights abuses (know who your partners are, policies apply to subsidiaries)

3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining (allow workers to form trade unions)

4. The elimination of all forms of forced and compulsory labor (treat migrant workers fairly, have contracts for all workers)

5. The effective abolition of child labor (age verification, programs for children of workers)

6. The elimination of discrimination in respect of employment and occupation (policies, zero tolerance)

7. Business should support a precautionary approach to environmental challenges (policies)

8. Undertake initiatives to promote greater environmental responsibility (reduce energy consumption)

9. Encourage the development and diffusion of environmentally friendly technologies

10. Business should work against all forms of corruption, including extortion and bribery (zero tolerance, anti-corruption policy, political donations are published)

www.unglobalcompact.org

The UN Global Compact — Ten Principles

The UN Global Compact — Reasons to Participate

20%

34%

34%

40%

46%

52%

53%

63%

0% 10% 20% 30% 40% 50% 60% 70%

Improve market access

Establish links with the UN

Acquire practical know-how

Increased awareness of Corporate SocialResponsibility

Improve public relations

Address humanitarian concerns

Networking opportunities

Increase trust in company

We continue to strive for Integrity, Fairness and Transparency

Financial, personal or professional interest with suppliers must be declared and precludes any participation in the procurement process

Zero tolerance . . .

Disputes? Contact Head of Procurement at Organization

Ethics in General

Christmas gift

Exclusive dinner with

partner

Expensive gifts for hobby

Amount of

money

Close Co-operationCourtesy

Business Dinner

Free Services

Holiday trip

Corruption

Right to get money

Nice business

travel

Thank you & good luck!