How to Do Business with United Nations

Procurement Seminar, Seoul, Republic of Korea

15 October 2004

Francis Tse

Procurement DivisionUnited 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 athttp://www.un.org/aboutun/chart.html

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

http://unbiz.un.int

http://www.ungm.org

“DOING BUSINESS WITH THE UN SYSTEM OF

ORGANISATIONS”

Please note that NOT all UN Organizations subscribe to the UNGM

!

http://www.iapso.org/supplying/business.asp

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 SYSTEMTHE 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 athttp://www.un.org/depts/ptd/contact.htm

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 2003Type of Commodities Purchase in 2003TOTALTOTAL

Air Transportation ServicesAir Transportation Services $206,080,727$206,080,727Chemical & Petroleum Products Chemical & Petroleum Products $96,418,278$96,418,278Motor Vehicles/Parts and Transportation Equipment Motor Vehicles/Parts and Transportation Equipment $66,536,615$66,536,615Telecommunication Equipment & ServicesTelecommunication Equipment & Services $60,695,332$60,695,332Freight Forwarding & Delivery ServicesFreight Forwarding & Delivery Services $58,936,530$58,936,530EDP Equipment and Maintenance Services EDP Equipment and Maintenance Services $53,199,531$53,199,531Food Rations & Catering ServicesFood Rations & Catering Services $41,651,419$41,651,419Architecture, Engineering & Construction Related ServicesArchitecture, Engineering & Construction Related Services $31,675,208$31,675,208Building Management & MaintenanceBuilding Management & Maintenance $30,642,269$30,642,269Travel and Related ServicesTravel and Related Services $30,366,538 $30,366,538Prefabricated BuildingsPrefabricated Buildings $23,622,141$23,622,141Real Estate Rental & LeaseReal Estate Rental & Lease $22,302,153$22,302,153Inspection and Related ServicesInspection and Related Services $20,171,335$20,171,335Airfield OperationsAirfield Operations $15,343,337$15,343,337Cleaning and Waste Disposal Service Cleaning and Waste Disposal Service $14,237,694$14,237,694Maintenance & Repair Services Maintenance & Repair Services $10,790,079$10,790,079Generator SetsGenerator Sets $10.728.037$10.728.037Electrical Apparatus and Electronic Component Electrical Apparatus and Electronic Component $7,844,628$7,844,628Tools & HardwareTools & Hardware $7,053,011$7,053,011Management Services Management Services $6,812,354$6,812,354OthersOthers $76,747,075$76,747,075

GRAND TOTAL: GRAND TOTAL: $891,854,689$891,854,689

United Nations Procurement ServiceUnited Nations Procurement Service

www.un.org/depts/ptd

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 NationsUnited 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 (http://unbiz.un.int)

Guide to websites of UN Organizations and their procurement offices includes:

Procurement Procedures and ServicesFrequently Purchased Goods and ServicesRecent TendersContract AwardsContacts Procurement Plans and Statistics Vendor Registration

UN Procurement Web Sites

http://unbiz.un.int/ (inter agency portal) www.un.org/Depts/ptd (UN Procurement Service)www.unops.org (UN Office for Project Services)www.undp.org (UN Development Program) www.wfp.org/index.asp?section=5www. unicef.org/ supply/www.un.org/unrwa/plo/procurement.htmlwww.iapso.org (Inter-Agency Procurement

Services)www.ungm.org (UN Global Marketplace)www.worldbank.org (The World Bank Group)www.unglobalcompact.org (The Global Compact)http://www.devbusiness.com/ (dev. Business)

Company Pre-Test: Are you ready to supply the UN?

Market knowledge (UN structure and culture)Suitable products / servicesExport experience / referencesLanguages (employees, documents)Networks / partner (country knowledge, after sales

services)Competitive Pricing Capacities (financial, personnel)Intercultural skillsFlexibility and accuracyPersistence, 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!