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Presented by: Carol Leber Team Leader, Communications & IT Support Team DOING BUSINESS WITH Presented by: Carol Leber Team Leader, Communications & IT Support Team DOING BUSINESS WITH THE UN Secretariat Procurement Presented by: Division 5 -6 October 2009 Name Title UN Secretariat Procurement Division UNITED NATIONS (UN) Date

How to do Business with the United Nations (UN) A. Overview of the United How to do Business with the United Nations (UN) A. Overview of the United Nations Procurement System UN Procurement Statistics How to Identify Business Opportunities General UN Procurement Procedures B. United Nations Secretariat Procurement Division C. The UN Global Compact D. Your questions and more info….

A. Overview A. Overview

Overview § The United Nations is made up of a variety of organizational entities: Overview § The United Nations is made up of a variety of organizational entities: ü Specialised Agencies, ü Funds & Programmes ü Secretariat: UNHQs, Offices Away From Headquarters, commissions, tribunals and field peacekeeping missions. § Each organization has a distinct and separate mandate covering the political, economic, social, scientific, humanitarian, and technical fields.

Useful General Addresses www. iaea. org www. ilo. org www. intracen. org www. unesco. Useful General Addresses www. iaea. org www. ilo. org www. intracen. org www. unesco. org www. unfpa. org www. unhcr. ch www. unicef. org www. unido. org www. unops. org www. undp. org International Atomic Energy Agency International Labour Organisation International Trade Centre UN Educational, Scientific and Cultural Organization UN Populations Fund UN High Commissioner for Refugees UN Children’s Fund UN Industrial Development Organisation UN Office for Project Services UN Development Program www. un. org UN Secretariat www. unrwa. org www. wfp. org www. wipo. int UN Relief and Works Agency World Food Programme World Intellectual Property Organisation

Overview EACH ORGANISATION…… • has its own specific requirements for goods and services • Overview EACH ORGANISATION…… • has its own specific requirements for goods and services • may conduct its own procurement activities • follows, in general, common principles for procurement rules and regulations • constitutes a separate and distinct customer/partner • has its own tempo, portfolio, specific characteristics YOU MUST LEARN ABOUT IT ……

Statistics (UN procurement system) Statistics (UN procurement system)

Total UN Procurement of Goods and Services (UN System) 2008 Total UN Procurement of Goods and Services (UN System) 2008

Major Items procured by the UN procurement system Goods Services • Food • Security Major Items procured by the UN procurement system Goods Services • Food • Security Services • Pharmaceutical Supplies • Outsourced Personnel Services • Vehicles • Engineering Services • Computers and Software • Construction • Shelter and Housing • Corporate Services • Telecommunications Equipment • Freight Services • Laboratory Equipment • Printing Services and Equipment Rental • Chemicals (POL) • Consultancy Services • Building Materials • Telecommunication Services

How to Identify Business Opportunities How to Identify Business Opportunities

Pre-registration process – Are you ready to supply to the UN (1/2) UN market Pre-registration process – Are you ready to supply to the UN (1/2) UN market knowledge - UN structure - UN procurement procedures UN structure - UN requirements - range of goods and services - period established Languages - English primary language Standards - International standards - UN requirements - UN procurement procedures - international experience - existing customers/references - local languages - best value for money

Pre-registration process – Are you ready to supply to the UN (2/2) § Country Pre-registration process – Are you ready to supply to the UN (2/2) § Country knowledge, after sales services § Capacities: Financial, personnel, equipment 1. Mobilization 2. Acquisition project size § Persistence, endurance, patience § Supplier code of conduct: http: //www. un. org/depts/ptd/pdf/conduct_english. pdf § Analysis, feedback and adjustment

Registration and Post registration process § Registration with the UNGM is the first step Registration and Post registration process § Registration with the UNGM is the first step towards doing business with the United Nations and is mandatory. § Continue UN market research: Planning acquisition, contract award, UN information, match capacity and requirements § Thorough information about procurement: Principles, procedures, T&C, etc. § Obtain systematic / regular information about current procurement activities / opportunities: Keep yourself up-to-date and update regularly your vendor profile

Post registration process Bid according to tender documents & instructions • Administrative mistakes may Post registration process Bid according to tender documents & instructions • Administrative mistakes may lead to rejection of bid • Observe international norms and standards or equivalent • Seek clarification in case of questions • If unsuccessful obtain debrief for your strength & weakness • If successful – perform according to contract • UN requires highest standards of performance!

Overview of UN Procurement System Procedures Overview of UN Procurement System Procedures

Common Guidelines for UN Procurement system Procurement activities of the UN system are based Common Guidelines for UN Procurement system Procurement activities of the UN system are based on the following principles: § The objectives/needs of the UN Organization § Fairness, integrity & transparency through international competition § Economy & effectiveness § Best value for money These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract

How are vendors are selected ? (UN sourcing) § Competitive suppliers of previous procurement How are vendors are selected ? (UN sourcing) § Competitive suppliers of previous procurement exercises § Past performance § Suppliers of the required goods or services, found on the UN Global Market (UNGM) § Codification (UNCCS) ü Automatic tender reference for UN Procurement Division § Through calls for Expression of Interest (EOI) § Search of World Wide Web § Trade Missions, Chambers of Commerce § Information exchange with other UN Agencies

Types of Solicitation § Expression of Interest (EOI) Written communication by a supplier to Types of Solicitation § Expression of Interest (EOI) Written communication by a supplier to provide information about its products, resources, qualifications and experience § Request for Quotation (RFQ) Less formal solicitation, low value, standard specifications, readily available on the market (off the shelf) § Invitation to Bid (ITB) Formal solicitation, lowest evaluated price, administrative and technically compliant § Request for Proposal (RFP) Formal solicitation, requirements possibly met in a variety of ways, overall best solution will win the award (combining technical solution, risk and price considerations) -- not necessarily the lowest price

Thresholds/Award for types of solicitation § Up to [30, 000 USD] - Local, informal, Thresholds/Award for types of solicitation § Up to [30, 000 USD] - Local, informal, simplified acquisition procedure - Requests for Quotation (RFQ) • Above [30, 000 USD] - Invitation to Bid (ITB) and Request for Proposal (RFP) - Open and formal: advertised (on the web) generally larger shortlist (minimum 6 potential bidders) - Public bid opening • Contract award – Contract authority - Review and recommendation by independent body for higher value contracts

Bid Evaluation Criteria (not exhaustive list) § Acceptance of UN payment terms, terms & Bid Evaluation Criteria (not exhaustive list) § Acceptance of UN payment terms, terms & conditions, contract template, liability, legal capacity, etc. § Delivery Terms (INCOTERMS 2000) § Delivery Time § Technical Requirements § Recognized International Standards or similar § Supporting Documentation § Proven Production Capacity & Financial Strength § Warranty Conditions § Appropriate After-sales Service § Previous Contract References § Price (life cycle cost)

Common General Terms & Conditions § UN General Clauses Conditions of Contracts (2008) for Common General Terms & Conditions § UN General Clauses Conditions of Contracts (2008) for Goods, Services, Combination, Construction § Most provisions are common within the UN procurement system, however some provisions may vary in text depending on individual agency requirements. § Potential suppliers are encouraged to familiarise themselves with the UN Terms & Conditions (UNGCC) 1. Immunity & Privileges 2. Bid and Performance bonds § UN Supplier Code of Conduct

B. United Nations Secretariat Procurement Division (PD) New York B. United Nations Secretariat Procurement Division (PD) New York

General information: Detailed general and specific information available at: http: //www. un. org/depts/ptd/contact. htm General information: Detailed general and specific information available at: http: //www. un. org/depts/ptd/contact. htm Generalist procurement organisation World wide operation Previous procurement principles apply plus “zero tolerance policy” and additional provisions for internal control (post employment) and risk management Easy registration process (next brief) Your commitment – Our Support - Your success !

The United Nations Secretariat - Area of operation NYC • UN Peacekeeping Missions • The United Nations Secretariat - Area of operation NYC • UN Peacekeeping Missions • UN Economic and Social Commissions (OAH) • International Criminal Tribunal

The United Nations Procurement Service Types of Equipment, Goods and Services Procured New York The United Nations Procurement Service Types of Equipment, Goods and Services Procured New York HQs and Field Missions: types of Goods and Services § Air Transportation Services § Inspection & Related Services § Chemical & Petroleum Products § Architecture, Engineering & Construction Related Services § Telecommunication Equipment & Services § Food Rations & Catering Services § Motor Vehicles/Parts & Transportation Equipment § Electrical Apparatus & electronic component § Real Estate Lease & rental § Banking & Investment § Computer Equipment and Services § Security Equipment § Logistics & Freight Forwarding § Pharmaceutical products and vaccines § Prefabricated Buildings § Medical Equipment

Procurement Trend 2003 -2008 (in US$ millions) Procurement Trend 2003 -2008 (in US$ millions)

Business Placed with Canadian Suppliers 2003 -2008 (in US$ Millions) Business Placed with Canadian Suppliers 2003 -2008 (in US$ Millions)

Major Goods and Services Purchased in 2008 in Millions (US$) Major Goods and Services Purchased in 2008 in Millions (US$)

Detailed Statistics Available at: http: //www. un. org/depts/ptd/statistics. htm Detailed Statistics Available at: http: //www. un. org/depts/ptd/statistics. htm

www. un. org/depts/ptd www. un. org/depts/ptd

UN Capital Master Plan (CMP) Overview UN Capital Master Plan (CMP) Overview

UN Capital Master Plan (CMP) – Business Opportunities 1/5 § The mission of the UN Capital Master Plan (CMP) – Business Opportunities 1/5 § The mission of the Office of the Capital Master Plan is to manage the historic renovation of the United Nations New York Headquarters Complex and to execute the renovation on time and within budget, in a safe, accountable, and transparent manner, in order to create a modern, safe and sustainable work environment. § Approved construction budget for the project is $1. 876 billion. § Under ‘Accelerated Strategy IV’ first construction works commenced on site during Spring 2008 with final completion scheduled for late 2013 The project will provide business opportunities for Developing Countries and Countries with Economies in Transition. §

UN Capital Master Plan (CMP) – Business Opportunities 2/5 § Procurement is being managed UN Capital Master Plan (CMP) – Business Opportunities 2/5 § Procurement is being managed by UN Secretariat Procurement Division (UNPD) in conjunction with Skanska USA Building Inc. § UNPD has already carried out the procurement of the main design team appointments and has also appointed Skanska USA Building Inc. as Preconstruction Services Manager and Construction Manager (a subsidiary of Skanska AB (Sweden)). § Certain residual specialist consultancy appointments may still be procured directly by UNPD but the main bulk of construction procurement is now being carried out by Skanska with appropriate UNPD oversight.

UN Capital Master Plan (CMP) – Business Opportunities 3/5 § The works will be UN Capital Master Plan (CMP) – Business Opportunities 3/5 § The works will be split into 20 -30 separate Construction Management contracts on a Guaranteed Maximum Price (GMP) basis. § Skanska appoints Trade Contractors (subcontractors) on a direct contract basis. § Construction Management Agreements are still to be negotiated for: § The Secreatriat § The General Assembly § The Conference Building § The South Annex § The Dag Hammarskjold Library

UN Capital Master Plan (CMP) – Business Opportunities 4/5 § Further direct appointments by UN Capital Master Plan (CMP) – Business Opportunities 4/5 § Further direct appointments by UNPD will be advertised initially as requests for Expression of Interest (EOI) on the UN Procurement Division website at http: //www. un. org/Depts. ptd. eoi. htm § Such direct appointments are likely to be limited to specialist consultancy services or specialist construction purchases. § Vendors who wish to work directly for the UN must register in advance via the UN Global Marketplace website at www. ungm. org § Trade Contractor (subcontractor) appointments by Skanska are advertised initially as requests for Expression of Interest (EOI) on the Skanska USA Building Inc website at https: //partners. myskanska. com/usa/clients/unitednations/CMP/default. aspx § Vendors who wish to work for Skanska as Trade Contractors are required to prequalify with Skanska via the link at the same webpage § Both UNPD and Skanska welcome enquiries from vendors from Developing Countries and Countries with Economies in Transition.

UN Capital Master Plan (CMP) – Business Opportunities 5/5 § UN Procurement Division contact: UN Capital Master Plan (CMP) – Business Opportunities 5/5 § UN Procurement Division contact: Simon Darnell United Nations Procurement Division 304 E 45 th Street, New York, NY 10017 Tel: +1 917 -367 -2659, E-mail: [email protected] org § Skanska USA Building Inc. procurement contact Ms. Kyrsten Brea Skanska USA Building Inc. c/o United Nations Capital Master Plan, Rm. L-1 B-179 United Nations, United Nations Plaza New York, NY 10017 Tel: +1 212 -729 -6261, E-mail: kyrsten. [email protected] com § Further website addresses: UN Capital Master Plan homepage: http: //www. un. org/cmp/uncmp/english/index. asp Skanska Capital Master Plan homepage: https: //partners. myskanska. com/usa/clients/unitednations/CMP/default. aspx

“ C. UN Global Compact “ C. UN Global Compact

The UN Global Compact Human Rights Labour Environment Anti-Corruption Voluntary international corporate citizenship network The UN Global Compact Human Rights Labour Environment Anti-Corruption Voluntary international corporate citizenship network initiated to support the participation of both the private sector and other social actors to advance responsible corporate citizenship and universal social and environmental principles to meet the challenges of globalization

The UN Global Compact Ten Principles: 1. 2. 3. 4. 5. 6. 7. 8. The UN Global Compact Ten Principles: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Business should support and respect the protection of internationally proclaimed human right; and Make sure that they are not complicit in human rights abuses; Business should uphold the freedom of association and the effective recognition of the right to collective bargaining; The elimination of all forms of forced and compulsory labour; The effective abolition of child labour; The elimination of discrimination in respect of employment and occupation; Business should support a precautionary approach to environmental challenges; Undertake initiatives to promote greater environmental responsibility; Encourage the development and diffusion of environmentally friendly technologies; Business should work against all forms of corruption, including extortion and bribery. www. unglobalcompact. org

Thank you & Good luck! Thank you & Good luck!

Any questions ? Any questions ?