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
INTRODUCTION OF eTENDERING IN UNDP’s PROCUREMENT PROCESSES
We are pleased to inform that UNDP is about to introduce on-line tendering system. eTendering, will be mandatory as of 01 September 2019 for the on-line management of all international competitive procurement valued USD 150,000 and above.
eTendering system is designed to facilitate the UNDP tender processes through online interaction. This system aims to enhance integrity and transparency of the tender processes and also enables streamlining of the procurement process: Bidders will use eTendering to register themselves, submit their bids, view solicitation documents and receive automatic notifications from the system whenever an event has been modified.
eTendering system addresses UNDP’s fundamental procurement values- fairness, integrity, transparency and accountability.
Some of the main benefits of eTendering system are:
✓ Electronic sealed bids: eTendering system encrypts bids submitted in the system and does not allow anyone to view any submitted information/data before the bidding deadline;
✓ Electronic stamping of the bids: The system stamps all information submitted by bidders and prevents anyone from altering, deleting or adding anything to the bid after the deadline for submission;
✓ No late submissions accepted: The system will automatically not accept any bid after the deadline;
✓ Streamlines the bidding process: Bidders will register in the system, retrieve all information and solicitation documents and receive automatic notifications on certain stages of the procurement process. Bidders will also submit their bid online, edit it directly in the system, and receive automatic notifications once the evaluation is finalized and the contract is awarded;
✓ Provides an audit trail: As the eTendering system records all activity in the system, it keeps an audit trail for increased accountability and transparency.
Training/s for utilization of the eTendering system for bidders will be organized shortly and their schedule will be timely announced on the UNDP BiH website.
Before attending a training session, bidders are strongly encouraged to familiarize themselves with the eTendering system by reviewing the guides/videos available on public UNDP Webpage
For any questions regarding the above, please contact UNDP BiH General Services Unit at firstname.lastname@example.org