UNDP Procurement is based on competitive bidding. The four principles of UNDP procurement are:
Best Value for Money
Fairness, Integrity and Transparency
Interest to UNDP
(economy, efficiency, equal opportunity to compete, transparency in the procurement process)
UNDP procurement guidelines categorically prohibit the acceptance of any gifts and favors from vendors and partners by UNDP staff members.
UNDP staff will not accept any gift, honor, decoration, remuneration, favor or economic benefit from any source external to their organization; this also includes Governments as well as commercial firms and other entities.
This prohibition on receiving gifts and favors extends beyond UNDP policy and is also embodied and institutionalized in the Code of Conduct established by the International Civil Service Commission of the United Nations.
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)
The most flexible and least formal method that is applied for procuring goods, services and/or works. RFQ calls for a written quotation. RFQ applies to contracts exceeding the range of $2,500 but less than $100,000.
Invitation to Bid (ITB)
An ITB is normally used whenever the entity is not required to propose technical approaches to a project activity, or to offer management or supervision of an activity. ITB’s are used when the entity is to provide its cost requirements to meet precise specifications sought from UNDP. This is normally the case when UNDP buys goods. It may also apply to work contracts and services that can be expressed quantitatively and qualitatively. ITB applies to contracts exceeding $100,000.
Request for Proposal (RFP)
RFP is used when the inputs and/or outputs cannot be quantitatively and qualitatively expressed at the time the invitation is made, as for example consulting or similar services are sought. A RFP may also be used for purchase of complex goods when we are not sure of the functional specifications and wish to seek proposals. RFP applies to contracts exceeding $100,000.
Special Service Agreement (SSA)
SSA recruitment is used to engage an individual to provide expertise, advisory services, skills or knowledge for the performance of a specific task or piece of work for a limited period of time, provided that such work is not in a staff replacement capacity or is for work normally performed by staff members. Individual contractors are not staff members and as such do not benefit from the protections and privileges and immunities applicable to staff members performing official functions.