How to Do Business with United Nations Procurement Seminar, Seoul, Republic of Korea 15 October 2004 Francis Tse Procurement Division United Nations

THE UNITED NATIONS SYSTEM

  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). THE UNITED NATIONS SYSTEM

Detailed chart available at

EACH ORGANISATION……   has its own special requirements for goods and services   conducts its own procurement activities   follows its own procurement rules and regulations   constitutes a separate and distinct customer THE UNITED NATIONS SYSTEM

  Identify the Organization that has a need for your product or service   Target your customer THE UNITED NATIONS SYSTEM

“DOING BUSINESS WITH THE UN SYSTEM OF ORGANISATIONS”   Please note that NOT all UN Organizations subscribe to the UNGM !

THE UNITED NATIONS PROCUREMENT SERVICE

THE PROCUREMENT SERVICE SERVES THE NEEDS OF…..   The Secretariat   Peacekeeping Missions   Offices Away from Headquarters (OAHs) THE UNITED NATIONS SYSTEM

UN Peacekeeping Missions UN Economic and Social Commissions International Criminal Tribunal THE UNITED NATIONS SYSTEM

The United Nations Procurement Service  Air Transportation Services  Chemical & Petroleum Products  Telecommunication Equipment & Services  Food Rations & Catering Services  Motor Vehicles/Parts & Transportation Equipment  EDP Equipment & Maintenance Services  Logistics & Freight Forwarding  Prefabricated Buildings  Inspection & Related Services  Architecture, Engineering & Construction Related Services  Electrical Apparatus & electronic component  Real Estate Lease & rental  Banking & Investment Types of Equipment, Goods and Services Procured

Detailed contact information available at

The United Nations Procurement Service TOTAL ANNUAL PROCUREMENT IN 2003 $891 MILLION

The United Nations Procurement Service As of September 2004 Total Number of Suppliers: 5,400 Total Number of Korean Suppliers: 27

Type of Commodities Purchase in 2003 TOTAL Air Transportation Services$206,080,727 Chemical & Petroleum Products $96,418,278 Motor Vehicles/Parts and Transportation Equipment $66,536,615 Telecommunication Equipment & Services$60,695,332 Freight Forwarding & Delivery Services$58,936,530 EDP Equipment and Maintenance Services $53,199,531 Food Rations & Catering Services$41,651,419 Architecture, Engineering & Construction Related Services$31,675,208 Building Management & Maintenance$30,642,269 Travel and Related Services $30,366,538 Prefabricated Buildings$23,622,141 Real Estate Rental & Lease$22,302,153 Inspection and Related Services$20,171,335 Airfield Operations$15,343,337 Cleaning and Waste Disposal Service $14,237,694 Maintenance & Repair Services $10,790,079 Generator Sets$ Electrical Apparatus and Electronic Component $7,844,628 Tools & Hardware$7,053,011 Management Services $6,812,354 Others$76,747,075 GRAND TOTAL: $891,854,689 United Nations Procurement Service

Practical Tips for Suppliers Doing Business with the United Nations

  UN Procurement Market   UN Procurement Reform   UN Procurement Web Sites   Company Pre-Test: Are you ready to supply the UN?   Step by step towards success Overview

UN Procurement Market Characteristics:   Decentralized market (within the system at large and within each organization)   Different procurement areas (Peace & Security, Humanitarian Aid, Development Aid)   Different mandates result in different procurement plans

UN Procurement Market Characteristics: (cont’d)   different registration procedures for companies and consultants   Awards are only given to registered vendors   Some organizations publish awards on web-site   procurement reform

The UN procures on competitive basis   Request for Quotation (RFQ)   Invitation to Bid (ITB)   Request for Proposal (RFP)   Direct Negotiation (DN) United Nations Procurement TYPES OF SOLICITATIONS/AWARDS

Payment Terms   Standard Payment Term: Net 30 days The United Nations Procurement Service

Delivery Terms   Incoterms 2000   DDU (Deliver Duty Unpaid) Destination e.g. : DDU New York   FCA (Free CArrier) Place e.g. :FCA Seoul The United Nations Procurement Service

Change has become a part of the UN’s culture Procurement Reform; Achievements and future plans United Nations

New UN Initiatives and Objectives:  Increase the number of inter agency master or enterprise agreements  Lead Agency Initiatives  Direct Agreements with Manufacturers  Decentralization of Low Value procurement  Electronic Commerce  UNGM – United Nations Global Marketplace

Online Portal ( Guide to websites of UN Organizations and their procurement offices includes:  Procurement Procedures and Services  Frequently Purchased Goods and Services  Recent Tenders  Contract Awards  Contacts  Procurement Plans and Statistics  Vendor Registration

UN Procurement Web Sites  (inter agency portal)  (UN Procurement Service)  (UN Office for Project Services)  (UN Development Program)   www. unicef.org/ supply/   (Inter-Agency Procurement Services)  (UN Global Marketplace)  (The World Bank Group)  (The Global Compact)  (dev. Business)

Company Pre-Test: Are you ready to supply the UN?  Market knowledge (UN structure and culture)  Suitable products / services  Export experience / references  Languages (employees, documents)  Networks / partner (country knowledge, after sales services)  Competitive Pricing  Capacities (financial, personnel)  Intercultural skills  Flexibility and accuracy  Persistence, endurance, patience

Step by step towards success  Extensive market research!  Identification of relevant UN Organization!  Monitor the respective websites!  Obtain systematic and regular information about Expressions of Interest, upcoming and current procurement opportunities and contract awards!  Find out what products and services the local UN offices, missions and projects procure!

 Respond to all tender invitations!  Respond to what is being requested in the tender documents  Follow procedures, norms and standards!  Seek clarification in case of questions!  Perform! Step by step towards success

We look forward to working with you! In Service of Peace and Development!