How we do business
UNDP Procurement Principles
UNDP manages procurement activities by adhering to the following general principles:
- Best Value for Money;
- Fairness, Integrity, Transparency;
- Effective International Competition; and
- The Interest of UNDP.
Types of Competition
Depending on the nature and size of the project and its procurement elemnts, UNDP may use any of the following competitive methods set in relevant guidelines to procure goods , civil works or services:
- Open International Competition;
- Limited International Competition; and
- Local and/or National Competition.
The types of solicitation practiced by UNDP are as follow:
- Expression of Interest (EOI)
Written communication by a supplier to provide information about its products, resources, qualifications and experience, in response to a particular EOI
- Request for Qoutation (RFQ)
Less formal solicitation, valued below US$ 100,000, with standard specifications and for products readily available in the market
- Invitation to Bid (ITB)
Formal solicitation, mainly for goods, valued above US$ 100,000, with lowest price compliancy and technical competency as determining factors
- Request for Proposal (RFP)
Formal solicitation, mainly for services, valued above US$ 100,000, with requirements possibly met in various ways, overall best solution will win the contract, and not necessarily the lowest price
As part of its commitment to the environment and sustainable management of natural resources, UNDP actively promotes and implements Green procurement by requiring its staff to conduct all activities, including contracting with other entities, in a resource-efficient manner. UNDP's Green procurement policy is based on the following four "R" strategies:
- Re-thinking the requirements to reduce environmental impact;
- Reduce materials consumption;
- Recycle materials/waste; and
- Reduce energy consumption.
UNDP is therefore selective in its choice of products, processes and services, taking into consideration the effects of energy consumption, toxicity, ozone depletions, radiations, and the use of recycled materials.