How we do business
UNDP Procurement is based on competitive bidding. Depending on the type, complexity, size and value of the project, commonly used methods of solicitation include:
Request for Quotation (RFQ) - an informal invitation to submit a quotation, usually for goods/services/civil works at a value between US$2,500 and $100,000. Prices, and other commercial terms and conditions are requested and award is made to the lowest priced technically acceptable offer.
Invitation to Bid (ITB) - a formal invitation to submit a bid usually associated with requirements that are clearly and concisely defined, with an estimated procurement value of US$100,000 or more. Normally price is the sole determinant in making an award. Where all technical criteria are met, award is made to the lowest bidder.
Request for Proposal (RFP) - a formal request to submit a proposal, usually associated with requirements for services, which cannot be clearly or concisely defined, with an estimated procurement value of US$ 100,000 or more. Price is only one of several factors comprising the evaluation criteria. Award is made to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents and is evaluated to be the lowest cost to UNDP.
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. In order to provide a faster procurement process, UNDP observes the local and international market, and negotiates and maintains Long Term Agreements (LTA) for goods and services that are frequently used by UNDP and development partners. Long-term agreements (LTA) reduce administrative efforts by a single tendering exercise over the life of the arrangement. They are normally awarded on a 1-year renewable basis.
Individual Consultancy - Individual Contract (IC) - Following Corporate Guidelines of UNDP, contracting individual consultants was handed over from the Human Recourses Unit to the Procurement Unit in April 2008. The individual consultants are covered by the Special Services Agreement (SSA) and the payment in general is based on outputs. Candidates are selected either from the roster of prequalified candidates managed by the Procurement Unit or through public advertisement on our website and in selected newspapers.
UNDP procurement is based upon the following principles:
- Best Value for Money
- Fairness, Integrity and Transparency
- Effective International Competition
- Interest of UNDP (economy, efficiency, equal opportunity to compete, transparency in the procurement process)
It is UNDP policy to manage all its business in an environmentally responsible manner. Hence, in all its activities, the Procurement Unit endeavors to protect the quality and diversity of the environment and reduce risks to human health and environment.
For more details about Procurement Methods and for Frequently Asked Questions (FAQ), refer to UNDP Procurement.
For details on specific types of procurement, refer to the following documents:
For procurement related queries contact: