Joint Procurement Activities 2011 — UNDP UNFPA UNOPS Renewed focus commitment

Joint Procurement Activities 2011 - UNDP/UNFPA/UNOPS Renewed focus/commitment to joint procurement • Leverage joint volume to lower purchase costs Presented by: Dominic Grace, Director Procurement Support Office, UNDP Eric Dupont, Chief Procurement Services Branch, UNFPA • Reduce administrative costs and avoid duplication • Gain efficiencies and strengthen procurement practices September 12, 2013 1

Joint Procurement Initiatives: Completed Participants Commodity/service Annual value (est. ) Benefits gained UNDP / UNFPA / UNOPS • Cargo Insurance UNDP / UNFPA / UNICEF • Medical/Health Insurance Various • Satellite Communications (VSAT) $20 m 45% cost reduction UNFPA/UNICEF • Hospital Equipment $3. 7 m Competition Duplication Efficiency Various Expansion of UN Web Buy: • Ongoing vehicle LTAs • > 200 trucks and busses • Solar energy products Various • Cloud Services $12 m UNDP / UNFPA • Census / Election Materials $5 m Various • Cross-buying from LTAs (piggybacking) UNDP / UNFPA / UNICEF / UNOPS • Sea Freight • Air Freight Various • e-Tendering System $2. 5 m $1. 89 m annual savings $1. 20 m annual savings ─ ─ • Savings of $25 m annually Duplication Efficiency 60% Cost reduction Efficiency Duplication > $433 k annual savings Efficiency Duplication • Cost avoidance of $12 m Efficiency $50 k • Product standardization • Fixed fee for product 2

Joint Procurement Harmonization Initiatives: Completed Participants Commodity/service Benefits gained UNDP / UNFPA / UNOPS • Policies developed to enable cross-buying from LTAs Various • Supplier Code of Conduct • Standards set • Best practice adopted Various • Harmonization Project – Phase I • Common glossary of terms • Common guidelines for procurement at country level • Training Tools • Strengthened standardized practices across UN • Standardized tools and guidelines UNDP / UNFPA / UNICEF / UNOPS • Implementation of UN model framework for vendor sanctions • Standardized approach Vendor Risk Management Various • UN Global Marketplace (UNGM) • Vendor Registration Reform Project Efficiency Process simplification Speed Efficiency Transparency Costs Vendor Risk Management 3

Joint Procurement Initiatives: Current Lead agency Commodity Annual value (est. ) Goals UNOPS • Carbon offset certificates (CER) joint procurement $50 k UNOPS Travel and Visa services $8 m UNOPS Office Products $4 m UNFPA Harmonization Project Phase 2 ─ • Promote implementation of guidelines on Procurement at the Country Level • Revise Procurement Practitioner‘s Handbook • Assess feasibility of harmonizing standard procurement documents UNDP Inter-Agency Task Team on Sustainable Procurement in Health Care ─ • Set standards • Environmental criteria for specifications and evaluation • Influence / Advocate UNDP Motor Vehicles Project Phase 2 $300 m Duplication • Assure supply Eligible projects Costs Efficiency Duplication Costs • Strengthen and standardize practices Costs Sustainable products • Focus on further consolidating and standardizing of vehicle models to reduce costs by 10 -20% 4

Joint Procurement Activities 2011 - UNDP/UNFPA/UNOPS Renewed focus/commitment to joint procurement • Leverage joint volume to lower purchase costs Presented by: Dominic Grace, Director Procurement Support Office, UNDP Eric Dupont, Chief Procurement Services Branch, UNFPA • Reduce administrative costs and avoid duplication • Gain efficiencies and strengthen procurement practices September 12, 2013 5

Harmonization Working Group – HLCM PN Background: -Procurement-related activities specified in action plan of QCPR -…and addressed in HLCM strategic plan and result framework -HLCM working group on harmonization aligned with priorities and outputs of QCPR action plan -Phase 1 now completed. Phase 2 will start very soon 6

Harmonization Working Group – HLCM PN Phase 1 - Deliverables: - Revised Guidelines for Common UN Procurement at the Country Level including an extended set of practical tools - Field support missions to countries to assess country outcomes and identify best practices - Extensive training material on UN cooperation - Worked with UN organisations to include UN cooperation material in training courses - Facilitated UNSSC training on common UN procurement, delivering training to over 120 UN staff 7

Harmonization Working Group – HLCM PN Phase 1 - Deliverables (continued): -Standardized table of contents for UN procurement manuals -Developed a Common UN Glossary of procurement-related Terms -Comparative review of procurement review committees -Piloted implementation of a new way of presenting the UN Procurement Practitioner‘s Handbook and Guidelines for Common UN Procurement at the Country Level (website, i. Phone & Android App, E-Book) -List of priority actions that, if implemented by UN agencies, would enable collaborative procurement 8

Harmonization Working Group – HLCM PN (baseline – end 2011) Include 2 slides on status of implementation 1. UN Cooperation; 2. Secondary Review; 3. LTAs; 4. Restrictions; 5. Procurement Services; 6. Integration of ‘guidelines´; 7. Communication on ‘Guidelines’; 8. Table of contents

Harmonization Working Group – HLCM PN ( Sept 2012) 1. UN Cooperation; 2. Secondary Review; 3. LTAs; 4. Restrictions; 5. Procurement Services; 6. Integration of ‘guidelines´; 7. Communication on ‘Guidelines’; 8. Table of contents

Harmonization Working Group – HLCM PN (Sept 2013) 1. UN Cooperation; 2. Secondary Review; 3. LTAs; 4. Restrictions; 5. Procurement Services; 6. Integration of ‘guidelines´; 7. Communication on ‘Guidelines’; 8. Table of contents

Harmonization Working Group – HLCM PN Phase 2 plan: - Scale-up roll out of the country guidelines - Assess countries that have been trained to use these guidelines - Train additional countries for the use of the guidelines - Assess feasibility of harmonising standard procurement documents 12