UNDP Procurement is based on competitive bidding. Depending on the type, complexity, size and value of the project and its procurement elements, commonly used methods of solicitation include:
REQUEST FOR QUOTATION (RFQ)
An RFQ is an informal invitation to submit a quotation, usually for goods/services/civil works at a value of between USD2,500 and USD100,000. Prices, and other commercial terms and conditions are requested and an award is given to the lowest-priced, technically-acceptable offer.
INVITATION TO BID (ITB)
An ITB is a formal invitation to submit a bid, usually associated with requirements that are clearly and concisely defined, with an estimated procurement value of USD100,000 or more. Normally price is the sole determinant in making an award. Where all technical criteria are met, an award is given to the lowest bidder.
REQUEST FOR PROPOSAL (RFP)
An RFP is a formal request to submit a proposal, usually associated with requirements for services that cannot be clearly or concisely defined, with an estimated procurement value of USD100,000 or more. Price is only one of several factors comprising the evaluation criteria. An award is given to the qualified bidder whose bid substantially conforms to the requirements set forth on the solicitation documents and is evaluated to have the lowest cost for UNDP.
In some cases, exceptions to competitive bidding are made and direct contracting is used. This usually happens when a Long-Term Agreement (LTA) is in place, either globally (IAPSO or HQ) or locally (at country office level).
For values less than USD2,500 country offices may engage in local shopping.
Evaluation of Offers
Depending on the procurement method, different factors are used in the evaluation process.
When evaluating RFQs and ITBs, the price is the most important element. In contrast to this, an RFP requires a technical evaluation. The technical component primarily determines whether the proposal will be accepted or declined. Additionally, UNDP evaluates its products and services based on the following criteria:
- Meet technical specifications
- Environmentally sound
- Quality Assurance
- Accuracy of documentation
- Speed of response
- Customer service
- Provides Technical Solutions
Conditions of Contract
In order to be a future supplier for the United Nations Development Programme, contractors must accept UNDP’s General Terms and Conditions.
For more information visit: http://www.undp.org/procurement