Presented by Niels Ramm (UNGM) and Susan Struck (HLCM PN) Athens, November 2008 DOING BUSINESS WITH THE UNITED NATIONS (UN)

Overview of the United Nations UN Procurement Statistics How to Identify Business OpportunitiesGeneral UN Procurement Procedures How to do Business with the United Nations (UN) Global Compact & Ethics

Overview

 The United Nations is made up of a variety of organizational entities (agencies, organizations, commissions, programmes, funds, etc).  Each entity has a distinct and separate mandate (covering the political, economic, social, scientific and technical fields).

……………………. ….

Le Nazioni Unite nel mondo UNAIDS OPCW Copenhagen UNOPS UNDP/PSO UNICEF Supply Division UNFPA Procurement Unit UNEP

EACH ORGANISATION... has its own special 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 Overview

Statistics (UN Procurement System)

Total UN Procurement of Goods and Services (UN System) ,6% more services than goods

Ten Major Countries of Supply to the UN System 2007

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

1. UNDP UN Sec WFP UNOPS PAHO UNESCO UNFPA UNRWA180 Volume of Procurement in 2007 of the 15 Principal Agencies 9. IAEA UNHCR UNDP/IAPSO FAO ILO UNOG UNIDO55

Procurement from Greece, USD2.78m (0.03%)

Procurement Goods and Services from Greece by Agency 2007, USD thousand UNDP1.63 WFP0.58 UNON0.25 UNOPS0.09 UNV0.06 UNOG0.04 UNESCO0.03 UNFPA0.03 UNRWA0.03 UN Sec0.02 FAO0.02 Goods Power cables Agricultural Equipment Electrical Equipment Water Storage Tanks Services Leasing and Renting Services Environmental Management Trade Facilitation

How to Identify Business Opportunities

 Market knowledge ―UN structure, procedure and value  Export experience / references ―Global and/or local operation  Languages ―Employees, documents  Competitive prices – Quality ―International competition – best value Are you ready to supply to the UN (1/2)?

Are you ready to supply to the UN (2/2)?  Networks / partner ―Country knowledge, after-sales services  Capacities ―Finance, personnel  Flexibility and accuracy ―Operational tempo  Persistence, endurance, patience

 The Annual Statistical Report Web-Based Information  The General Business Guide (GBG)  Practical Tips — Doing Business with the UN Towards one single commercial and procurement portal: UN Global Market Place (UNGM) Additional information:  Procurement notices  Value-Added Service: Receive relevant procurement notices directly in your Inbox, USD250 annually

Business Information The Annual Statistical Report UN procurement by country – UN Agency procurement by country, commodity or service – Purchase orders and Contracts (over USD 30,000) placed by agency, by country of vendor, value and description of goods or services – Top Ten items procured by Agency The General Business Guide – Lists all UN Organizations, fields of activity, contact persons, procurement activities and requirements and registration procedures Available from Both publications are updated on an annual basis

Step-by-Step Towards Success  Extensive market research ―Planning acquisition, contract award, UN information  Identification of relevant UN Organization ―Match capacity and requirements  Registration — United Nations Global Marketplace ―Mandatory for majority of UN agencies  Thorough information about procurement ―Principles, procedures  Obtain systematic / regular information about current procurement activities / opportunities ―Keep yourself up-to-date

UN Procurement Procedures

Common Guidelines for UN Procurement system Procurement activities of the UN system are based on the following principles: Advancing the interests of the organisation Obtaining value for money Ensuring probity through inter alia, fairness, integrity, transparency and effective competition Accountability for outcomes These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract

 Competitive suppliers of previous procurement ―Past performance  Suppliers of the required goods or services, found on the UN Global Marketplace ―Codification  Through calls for Expression of Interest (EOI) ―Notices  Search of World Wide Web  Trade Missions, Chambers of Commerce  Exchange with other UN Agencies How are vendors shortlist compiled? (Sourcing)

Supplier Criteria  Minimum of 3 years experience in relevant business line  Export Experience (where applicable)  Certified financial reports for the past 3 years (Annual turnover + annual profit + company’s own capital)  References, 3 recent contracts, goods/services supplied, dates and client details  Quality Certification  General Terms and Conditions  Supplier Code of Conduct

 the value of the procurement  the nature of the goods and services to be procured  critical dates for delivery How is the procurement method decided?

Up to 30,000 USD ** - Informal, simplified acquisition procedure - Requests for Quotation (RFQ) - Lowest priced, technically acceptable bidder or best value bidder (evaluated). 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, 3 to comply) - Public bid opening - Review and Recommendation by Contract Committees Thresholds/Award for types of solicitation ** Thresholds vary

 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, lower value, standard specifications, readily available on the market  Invitation to Bid (ITB) Formal solicitation, lowest evaluated price, compliant 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 and price considerations) -- not necessarily the lowest price Types of Solicitation

 Long Term Agreement (LTA)/Frame Agreement A long-term agreement based on ITB or RFP process 2-4 years period Potentially more than one LTA for same goods/service Advantage: Shortens delivery time by shortening process  Direct Contracting Exception to the rule In case of extreme emergency Sole source If competitive bidding process has failed for valid reason Very stringent controls and has to be well justified Types of Solicitation

 Cover both the procurement of goods and the contracting of services.  Most provisions are common within the UN procurement system, however some provisions may vary depending on individual agency requirements.  Familiarise yourself with the UN Terms & Conditions (UNGCC). Common General Terms & Conditions

The Global Compact “

Business should: 1.Support and respect the protection of internationally proclaimed human rights (policies, basic working conditions, right to health/privacy, workplace health and safety) 2.Make sure that they are not complicit in human rights abuses (know who your partners are, policies apply to subsidiaries) 3.Business should uphold the freedom of association and the effective recognition of the right to collective bargaining (allow workers to form trade unions) 4.The elimination of all forms of forced and compulsory labor (treat migrant workers fairly, have contracts for all workers) 5.The effective abolition of child labor (age verification, programs for children of workers) 6.The elimination of discrimination in respect of employment and occupation (policies, zero tolerance) 7.Business should support a precautionary approach to environmental challenges (policies) 8.Undertake initiatives to promote greater environmental responsibility (reduce energy consumption) 9.Encourage the development and diffusion of environmentally friendly technologies 10.Business should work against all forms of corruption, including extortion and bribery (zero tolerance, anti-corruption policy, political donations are published) The UN Global Compact — Ten Principles

The UN Global Compact — Reasons to Participate

Global Compact — Leading by Example CSouth Africa’s electricity utility CSupport Human Rights by Employment Equity. Affirmative action, gender equity and rights of people with disabilities are key CSupport and develop Black Economic Empowerment, in particular black woman-owned SMEs Swiss-based pharmaceutical company’s ‘Living wage’ policy Starbucks Score and reward suppliers against a set of environmental and social guidelines. Better score = better prices US based automotive systems and facility management Promotes environmental responsibility and sustainability through ‘green buildings’, energy reduction and sharing best practices.

Danisco + Danish Ministry of Foreign Affairs + NGOs = Sustainable Vanilla supply and continued livelihood of Uganda farmers Global Compact — Partnerships in Practice Rahimafrooz Batteries + Bangladesh Government + Battery Manufacturers Associations = Awareness of health hazards of battery waste and collection and safe disposal of waste Unilever + Tanzanian crushers + UNDP = Sustainable supply chain for Allanblackia (AB) oil and living wage for farmers and crushers

 We continue to strive for Integrity, Fairness and Transparency  Financial, personal or professional interest with suppliers must be declared and precludes any participation in the procurement process  Zero tolerance...  Disputes? Contact Head of Procurement at Organization Ethics in General

Christmas gift Exclusive dinner with partner Expensive gifts for hobby Amount of money Close Co-operation Courtesy Business Dinner Free Services Holiday trip Corruption Right to get money Nice business travel

Thank you & good luck!