Inter-Agency Procurement Technical Module

What is Inter-Agency Procurement? Collaborative procurement by participating UN Agencies for commonly required goods and services. –Use of existing LTAs/Contracts entered into by one Agency –Joint bidding and contracting by two or more agencies for same goods/services.

Joint/Common UN Contracts Common Contract/Long Term Arrangements between participating UN agencies and suppliers/service providers. Same Terms and Conditions: –Prices –Delivery –Services –Obligations

Typical Commodities Office supplies Fuel Transport equipment Office Equipment, including servicing and maintenance Programme supplies

Typical Services Building maintenance/cleaning services Camp management Travel Services Security Roster for consultants/ suppliers Customs clearance and freight forwarding Transportation services Telecommunications Inspection Services

Advantages Economies of Scale –Direct:Lower Prices –Indirect:Savings in HR/Administrative Costs and Time Consistency of quality of goods or services Collaboration instead of competition Better use of staff time and effort

Disadvantages Limit competition to larger suppliers and contractors May lead to long term monopolies May lead to less personalized services (short term)

Challenges Agreement/consensus among UN Agencies Buy in from Heads of Agencies and respective procurement staff Selection of procurement procedure to be used Agreement on financial thresholds

Georgia Type of CS: Long Term Agreements (Office supplies & stationeries – 125 items) No. of Agencies: 8 (+ various GoG projects) Cost if done by Individual Agency: aver. $12,000 per annum/per agency Cost done as a CS: aver. $ 9,840 per annum/per agency Savings: $ 2,160 per annum/per agency or $17,280 per annum collectively.

Zimbabwe Type of CS: Fuel Procurement No. of Agencies: 17 UN and 4 quasi Required: approx 100,000 ltrs/mo collectively A. Cost of previous 100,000L x.58 cents = $58,000 usd per month. Annual cost = $696,000 usd B. Cost of new 100,000L x.35 cents per liter (incl. mgt fee) = $35,000 usd per month Annual cost = $420,000 usd C. Savings per annum= $276,000 usd

Zimbabwe Type of CS: Fuel Procurement (continued) D. Efficiencies and Benefits: 1. Continuous/regular fuel supply 2. Sole UN access and use (+ staff) 3. Electronic monitoring/control of fuel disbursements 4. Leverage with provider Source: Harare OMT

Philippines Type of CS: Outsourcing Registry and Documentation Unit No. of Agencies: 10 A.Cost if done by Individual Agency: $13,000 aver. per annum/per agency B.Cost done as a CS: $ 4,500 aver. Per annum/per agency C.Savings: $8,500 per annum/per agency or $85,000 per annum collectively.

Philippines Type of CS: Outsourcing Registry and Documentation Unit No. of Agencies: 10 D. Efficiencies and Benefits: 1.Outsourced administrator cost-shared 2.Better leverage with service provider 3.Efficient use of respective Admin staff 4.Technical expertise on docs management 5.Reduces facility and space use 6.Simplified billing and payments

Next Steps Advocate with Heads of Agencies through the Operations Management Team Identify services and supplies commonly required by participating agencies Determine extent of competition

Next Steps Select procurement procedure Select lead procurement agency(ies) Establish bid evaluation committees Conduct competitive bidding, evaluation and contract award

Types of Arrangements Resulting LTA/contract will be established by the lead procurement agency on behalf of participating agencies. * Madagascar example Madagascar example Each participating organization will sign the LTA with the winning bidder using the same terms and conditions.

Samples and good practices Visit Common Services Good Practices Other LTA Examples Includes: Travel– Ecuador & Kenya Security- Mozambique

END