How does UNDP do business
Following UNDP’s financial regulations and rules, the following general principles must be given due consideration while executing procurement on behalf of the organisation:
- Best value for money
- Fairness, integrity and transparency
- Effective international competition
- The interest of UNDP
By and large the core governing principle of UNDP is to obtain the best value for money. In the context of the procurement process, obtaining 'best value for money' means selection of the offer which presents the optimum combination of life-cycle costs and benefits, and meets the business unit’s criteria.
Best value for money should not be equated with the lowest price option. Rather, it requires an integrated assessment of technical, organisational and pricing factors in light of their relative importance, for example, reliability, quality, experience, reputation, past performance, cost/fee realism and reasonableness. A business unit’s parameters can also include social, environmental and other strategic objectives once identified in a procurement plan.
As competition is the basis for efficient, impartial and transparent procurement, Business Units are therefore, responsible for protecting the integrity of the procurement process and maintaining fairness in UNDP’s treatment of all offers
Sound procurement (that is: openness of process, probity, complete and accurate record-keeping, accountability, and confidentiality) establishes and then maintains rules and procedures that are attainable and unambiguous.
The objective of UNDP’s competitive processes is to provide all eligible prospective offers with timely and adequate notification of UNDP’s requirements, and equal opportunity to tender for the required goods, civil works and services.
Business units should ensure that restrictions are not placed on the competitive processes limiting the pool of potential offers, as UNDP does not accept procurement awarded to exclusive contractors or countries, unless otherwise explicitly mentioned in a donor agreement. However, any such restrictive procurement provisions within an agreement must obtain prior approval of the Chief Procurement Officer.
In practice, the specific procurement rules and procedures established for the implementation of a programme are contingent upon the individual circumstances of a particular requirement. However, four considerations consistently guide the organisation’s interest for the acquisition of inputs:
· The need for economy and efficiency in the implementation of the programme, including the procurement of goods, civil works, and services involved.
· The access to procurement opportunities for all interested and qualified offers worldwide, except where other criteria are mandated by the Security Council or General Assembly.