Niels Ramm UNGM and Susan Struck HLCM PN

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DOING BUSINESS WITH THE UNITED NATIONS (UN)
Presented by Niels Ramm (UNGM) and Susan Struck
(HLCM PN) Athens, November 2008
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How to do Business with theUnited Nations (UN)
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Overview
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• 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).

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Le Nazioni Unite nel mondo
OPCW
UNEP
Copenhagen UNOPSUNDP/PSOUNICEF Supply
DivisionUNFPA Procurement Unit
UNAIDS
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• 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

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Statistics (UN Procurement System)
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4,6 more services than goods
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Greece, 148th
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• Goods
• Food
• Pharmaceutical Supplies
• Vehicles
• Computers and Software
• Shelter and Housing
• Telecommunications Equipment
• Laboratory Equipment
• Building Materials

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Goods Power cables Agricultural Equipment
Electrical Equipment Water Storage
Tanks Services Leasing and Renting Services
Environmental Management Trade Facilitation
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How to Identify Business Opportunities
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• 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

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• Networks / partner
• Country knowledge, after-sales services
• Capacities
• Finance, personnel
• Flexibility and accuracy
• Operational tempo
• Persistence, endurance, patience

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Towards one single commercial and procurement
portal UN Global Market Place (UNGM)
Additional information www.ungm.org

• The Annual Statistical Report

• The General Business Guide (GBG)

• Practical Tips Doing Business with the UN

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

NEW
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• 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

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• 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

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UN Procurement Procedures
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• 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

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• 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

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• 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 companys own
  capital)
• References, 3 recent contracts, goods/services
  supplied, dates and client details
• Quality Certification
• General Terms and Conditions
• Supplier Code of Conduct

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• the value of the procurement
• the nature of the goods and services to be
  procured
• critical dates for delivery

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• 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 vary
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• 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

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• 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

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• 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).

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The Global Compact
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• Business should
• Support and respect the protection of
  internationally proclaimed human rights
  (policies, basic working conditions, right to
  health/privacy, workplace health and safety)
• Make sure that they are not complicit in human
  rights abuses (know who your partners are,
  policies apply to subsidiaries)
• Business should uphold the freedom of association
  and the effective recognition of the right to
  collective bargaining (allow workers to form
  trade unions)
• The elimination of all forms of forced and
  compulsory labor (treat migrant workers fairly,
  have contracts for all workers)
• The effective abolition of child labor (age
  verification, programs for children of workers)
• The elimination of discrimination in respect of
  employment and occupation (policies, zero
  tolerance)
• Business should support a precautionary approach
  to environmental challenges (policies)
• Undertake initiatives to promote greater
  environmental responsibility (reduce energy
  consumption)
• Encourage the development and diffusion of
  environmentally friendly technologies
• Business should work against all forms of
  corruption, including extortion and bribery (zero
  tolerance, anti-corruption policy, political
  donations are published)
• www.unglobalcompact.org

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Swiss-based
pharmaceutical companys Living wage
policy Starbucks Score and reward
suppliers against a set of
environmental and social
guidelines. Better score better
prices
US based automotive systems and facility
management Promotes environmental responsibility
and sustainability through green buildings,
energy reduction and sharing best practices.

• South Africas electricity utility
• Support Human Rights by Employment Equity.
  Affirmative action, gender equity and rights of
  people with disabilities are key
• Support and develop Black Economic Empowerment,
  in particular black woman-owned SMEs

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Danisco Danish Ministry of Foreign Affairs
NGOs Sustainable Vanilla supply and continued
livelihood of Uganda farmers
Unilever Tanzanian crushers UNDP
Sustainable supply chain for Allanblackia (AB)
oil and living wage for farmers and crushers
Rahimafrooz Batteries Bangladesh Government
Battery Manufacturers Associations Awareness
of health hazards of battery waste and collection
and safe disposal of waste
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• 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

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Thank you good luck!