How does UNDP do business
UNDP business processes related to contracts, asset and procurement management are guide by the UNDP User Guide Contract, Asset & Procurement Management.
The UNDP Results Management Guide provides a process-based description of required minimum programming methods articulated as policies, tasks and deliverables, for use in the effective planning and execution of UNDP's development programmes and projects.
UNDP Procurement Principles
The following four principles have been established as part of UNDP's Finanial Rules and Regulations and are key to UNDP's procurement process:
- Best Value for Money
- Fairness, Integrity, Transparency
- Effective International Competition
- The Interest of UNDP
Request for Quotation (RFQ): An RFQ is an informal invitation to submit a quotation, usually for goods/services/civil works at a value between US$2,500 and 100,000.
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 US$100,000 or more.
Request for Proposal (RFP): An RFP is a formal request to submit a proposal, usually associated with requirements for services, which can not be clearly or concisely defined, with an estimated procurement value of US$100,000 or more.
In some cases, exceptions to competition 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 the country office level).
For values less than US$2,500, UNDP Mozambique may engage by soliciting price assessments.
UNDP's Approach to "Sustainable" or "Green" Procurement
It is UNDP's policy to manage its business in an environmentally responsible manner. Environmental responsibility is part of sustainable or "green" procurement and includes the selection of goods and services that minimize environmental impacts. UNDP "green" procurement promotes the four ' R' strategies:
- re-think the requirements to reduce environmental impact
- reduce material consumption
- recycle materials/waste and
- reduce energy consumption.