UNICEF’s Procurement Processes and Tendering for Diagnostics

Joint UNICEF, UNFPA and WHO Meeting with Manufacturers and Suppliers

UN City, Copenhagen

Presented by: Lama Suleiman

23 September 2014 Contracts Manager – Unicef Supply Division

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Guiding Principles of UNICEF’s procurement process

� Promotion of objectives of UNICEF(fulfilling the mandate, goals and objectives)

� Fairness, integrity and transparency through competition(clear & appropriate regulations/rules applied to all suppliers, fairprocess, equal treatment of suppliers, transparent system, publicbid opening, public Notification of awards including pricing,Individual Post award debriefings offered to all bidders)

� Economy and effectiveness(meet requirement in terms of quantity, quality, timeliness at theright place. Economy=minimize cost, Effectiveness=meet end-user interest)

� Best value for money(Consider the optimum combination of factors in meeting the enduser needs; BVM does not mean lowest cost but best ROI)

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Regulatory Framework governingUNICEF procurement process

� Financial Regulations and Rules (FRR), Article XII. Internal Control

� Financial and Administrative Policy, e.g.

� Policy 1 – Internal Controls

� Policy 5 – Cash Disbursements, Supplement 6 on CRC

� Executive Directives, e.g.

� Anti-Fraud Policy, Whistle Blower Policy

� Supply Directives e.g. Supply Division Commitment

� Supply Manual: Procurement Guidelines & Procedures

� Guiding Procurement Principles

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Examples of Controls and Oversight

• Internal Oversight

– UNICEF Financial Rules and Regulations

– UNICEF Procurement Procedures

– Ethical Code

– Contracts Review Committee (independent from contracting staff)

– Procurement Training and Certification of contracting staff

• External Oversight – Audit

– UN External Audit

– UNICEF Internal Audit

� Application to become a UNICEF supplier

All applications to become a supplier with UNICEF must be made via the United Nations Global Marketplace (UNGM) website http://www.ungm.orgUNICEF does not do business with suppliers that have not been accepted in the UNGM. There is no charge for the UNGM service.

� Financial evaluation of suppliers (SEU)A financial evaluation may be carried out in order to minimise the procurement risk to UNICEF. In this respect, UNICEF may request suppliers to provide a complete copy of their audited financial statements, with comparative figures for the previous year; signed by their company's auditing/accounting firm. (All this documents are treat as a confidential

To Become a UNICEF Supplier

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Procurement Process

�Procurement Planning

�Requirement Definition

�Sourcing/Invitee list (REOI / UNICEF Vendor Roster / UNGM...)

�Preparation and Issuance of Solicitation Documents�Request for Quotation (RFQ) � USD 2,500 - USD 30,000�Invitation to Bid (ITB) � USD 30,000 and over�Request for Proposal (RFP) � no threshold

�Receipt and Opening of Submissions

�Evaluation (Technical/Quality, Commercial and SEU)

�Adjudication & Award Recommendation

�Contract Finalization and Issuance

�Contract Management

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NEEDS ASSESSMENT /

REQUIREMENT

DEFINITION

MARKET ANANLYSIS

SOLICITATION PROCESS

RECEIPT & OPENING

OF OFFERS

TENDER EVALUATION

CONTRACTS REVIEW

COMMITTEE

AWARD & CONTRACT

FINALIZATION

CONTRACT MANAGEMENT &

ADMINISTRATION

GOODS

RECEIPT

INVOICE CERTIFICATION

END USER MONITORING

Procurement process is governed by UNICEF Financial Rules and Regulations and includes segregation of duties

WHO BULK PROCUREMENT

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Procurement Workflow

Requisition –

defined need

Receipt of

submissions

Adjudication &

Award

Recommendation

Including CRC

Issuing

PO, Contract

or LTA

Issuance

of tender

Choice of

solicitation

method

Sourcing/

Invitee list

Confirmation

of

Specifications Evaluation of

Submissions

(Technical/Financial)

EVALUATION of THE OFFERS

Bid opening /

Bid tabulation

Receipt of

offers

Adjudication

Mandatory

criteria

Commercial

terms

Technical

requirements

Invalidation

Acceptable

Yes

Complies

No

Not

recommendedDoes not

comply

Not

recommended

Not

Acceptable

Preliminary evaluation

Technical evaluation

Commercial evaluation

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• Evaluations have to be according to evaluation criteria and methods stipulated in the original solicitation document

• Criteria and methods cannot be altered throughout the evaluation process

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Examples of screening criteria:

• Financial Viability.

Production capacity.

• Non-involvement in child labour.

• Non-involvement in landmine production or parts

there of.

• Adherence to Social and Environmental standards.

• Export experience.

• Developing country experience.

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Award recommendation based on outcome of the evaluation reports

If above a certain threshold

SD - US$100,000

=> Contracts Review

Committee (CRC)

CO – US$50,000

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As an advisory body to authorized UNICEF officials to provide a competent, independent and unbiased review of the process leading to proposed contract

award recommendations

CONTRACTS REVIEW COMMITTEE

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What is a Long Term Arrangement (LTA)?

LTA is an arrangement entered into with a supplier to secure the supply of a product or service over a period of time;

� Framework of mutually agreed terms and conditions (product, price, etc.)

� As a result of a competitive bidding process� For procurement of goods, services or works for which the buyer has

a repeated need� Entered in good faith for a period of time

� Contractual obligations only commence once a purchase order is issued

� Could be time bound or with a projected total volume� Non-exclusive� Long term commercial partnership with selected supplier(s)

Long Term Arrangement(LTA) features

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Long Term Arrangement(LTA) Highlights

Most Favored Customer Clause

Unethical Behavior

Disclosure of Sanctions or Temporary Suspension

Corrupt and Fraudulent Practices

Guidelines on Gifts and hospitality

Officials not to benefit

Liquidated damages clause

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By submitting an offer the bidder certifies that UNICEF, for Long Term Arrangements /

Purchase Orders / Contracts resulting from this tender, is not being charged more than other

clients for similar goods (products) or services and similar quantities and within similar

circumstances.

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Create Sales orderMost Favored Customer Clause

UNICEF strictly enforces a policy of zero tolerance concerning unethical, unprofessional or fraudulent acts of UNICEF bidders. Accordingly, any registered bidder that is found to have undertaken unethical, unprofessional or fraudulent activities will be suspended or forbidden from continuing business relations with UNICEF.

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Create Sales orderUnethical Behavior

UNICEF requires that all bidders associated with this Invitation to Bid observe the highest standard of ethics during procurement and execution of the work. In pursuance of this policy UNICEF:

(a) Defines for the purpose of this provision the terms set forth as follows:

(i) ‘corrupt practice’ means the offering, giving, receiving or soliciting of any thing of value to influence the action of a public official in the procurement process or in the execution of a contract, and

(ii) ‘fraudulent practice’ means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the client, and includes collusive practice among bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels and to deprive the client of the benefits of free and open competition;

(b) Will reject a proposal for award if it determines that the selected supplier / contractor have engaged in any corrupt or fraudulent practices in competing for the contract in question;

(c) Will declare a bidder ineligible, either indefinitely or for a stated period of time, to be awarded a UNICEF-financed contract if at any time it determines that it has engaged in any corrupt or fraudulent practices in competing for, or in executing a UNICEF-financed contract.

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Create Sales orderCorrupt and Fraudulent Practices

Only suppliers found to be responsible are eligible to be awarded UNICEF contracts and/or to bid on UNICEF solicitations. To be deemed a responsible supplier with whom UNICEF will conduct business, a supplier should not be suspended, debarred, or otherwise identified

as ineligible by any organization within the World Bank Group or any other International or UN

Organization. Suppliers are therefore required to disclose to UNICEF whether they are subject to any sanction or temporary suspension imposed by the

World Bank Group or any other International or UN Organisation.

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Create Sales orderDisclosure of Sanctions or Temporary Suspension

The bidder warrants that no official of UNICEF or the United Nations has received or will be offered by the bidder any direct or indirect benefit arising from this tender or the award thereof. The bidder agrees that breach of this provision is a breach of

an essential term of the Invitation to Bid.

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Create Sales orderOfficials not to benefit

Bidders shall not offer gifts or hospitality to UNICEF staff members. Recreational trips to sporting or

cultural events, theme parks or offers of holidays, transportation, or invitations to extravagant lunches

or dinners are also prohibited.

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Create Sales orderGuidelines on Gifts and hospitality

For late delivery of items or items which do not meet UNICEFs specifications and therefore rejected by UNICEF

UNICEF shall be entitled to claim liquidated damages from the successful Bidder.

Deduction of -0.5% of the value of the items pursuant to the Purchase Order per additional day of delay, up to a maximum of 10% of the value of the Purchase Order.

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Create Sales orderLiquidated damages clause

FCA deliveries = the manufacturing period + transit for dispatch from the offered FCA location.

UNICEF’s Freight Forwarders will pick the goods from the

designated FCA location.

FCA prices to include packing, certifications (e.g. exportlicenses) and transport to FCA location if applicable

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Create Sales orderOffered lead times & prices have to be realistic

• Evaluating and monitoring supplier performance against their contractual obligations

• To minimize the risks of delivering to our customers’ poor quality products, of the wrong quantity and not in compliance with the agreed timeframe.

• Selection of invitees.

* We ensure that any construed misinterpretations of data by the supplier are fully explained to them thus facilitating the continual improvement of supplier performance.

Supplier Performance and Monitoring

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Inspection and Quality Aspects

� Pre-delivery inspectionFrom time to time UNICEF will request for Pre –delivery inspection to be done at suppliers’ premises. Inspections of products prior to delivery are generally carried out by UNICEF-contracted third party inspection agencies.

� Lot testingPrior to shipment, the supplier is requested to provide UNICEF Supply Division with a lot testing certificate from one of the two laboratories under the WHO-FIND Lot Testing Program for Malaria RDTs. For more information please consult www.wpro.who.int/sites/rdt/who_rdt_evaluation/lot_testing.html

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UNICEF VACCINES

Thank you!

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