An Agency for which the Vendor Review Committee (VRC) has determined that Proscribed Practices took place in respect of one or more of its procurement activities.
A financial authorization issued by the Administrator to an official or to a unit to incur commitments for specific purposes relating to the institutional budget and within specified limits, during a definite period;
A subdivision of the appropriations for which a specific amount is shown in the appropriate decision and within which the Administrator is authorized to make transfers without prior approval;
The total amount approved by the Executive Board for specified purposes for the current institutional budget against which commitments may be incurred for those purposes up to the amounts so approved. The appropriations are divided into “appropriations lines”, for each of which a specific amount is shown in the appropriate decision adopted for each budget period by the Executive Board and within which the Administrator is authorized to make transfers without prior approval.
The core governing principle in UNDP's procurement is to obtain the bet value for money. Best value for money should not be equated with the lowest price. It requires an integrated assessment of technical, organizational and pricing factors in light of their relative importance (i.e., reliability, quality, experience, reputation, past performance, cost/fee and reasonableness). Parameters can also include social, environmental and other strategic objectives defined in the procurement plan.
During transportation and storage, all cargo is vulnerable to a range of risks, such as damage, pilferage and theft, breakage, non-receipt of part or an entire consignment. Cargo insurance thus provides protection against potential financial losses resulting from such risks. Business Units should ensure the following: a. Protection for goods subject to risks, including war, strikes, riots and civil commotions.; b. The duration of insurance coverage is sufficient for the period of transportation from “warehouse to warehouse,” including a minimum of 30 days, estimated for storage at the destination site; c. Goods are insured for the cost, insurance and freight (CIF) value plus an agreed percentage, generally 10 percent, to reflect the indirect cost to the Business Unit incidental to cover, or replace goods.
A letter of reprimand based on the Respondent’s conduct. A censure does not affect the Respondent’s eligibility to participate in UNDP procurement processes, but it will be an aggravating factor in any future decisions to impose additional Sanctions.
The individual who manages the Vendor Review Committee (VRC) and its proceedings. The VRC Chairperson reports to the Chief Procurement Officer (CPO) and is responsible for the issuance of decisions taken by the CPO.
According to Rule 121.01 paragraph (a) of the UNDP Financial regulations and Rules (as amended on January 1, 2012), the Chief Procurement Officer of UNDP is accountable to the Administrator for all procurement functions of UNDP for all its locations, except for those procurement actions governed by paragraph (c). The Chief Procurement Officer may further delegate authority to staff at headquarters and other locations, as may be appropriate in fulfilling the purposes of these rules.
Circumventing thresholds for undertaking formal solicitations and for review by procurement review committees occurs by splitting orders, establishing long-term agreements that have no total value, and estimating costs below real costs to bring in low-value contracts that are later adjusted. When extending or amending contracts, determine the contract history and current cumulative contract amount, and justify why the contract is being extended or amended.
Act or omission that impairs or harms, or threatens to impair or harm, directly or indirectly, any party or the property of the party to improperly influence the actions of a party.
Collusion between UNDP staff members or between UNDP personnel and suppliers could involve kick-backs or bribes, resulting in UNDP personnel manipulating the process, such as by restricting the list of suppliers. It is critical not to allow personnel to operate alone in many steps of the procurement process, especially in evaluation of and negotiations with suppliers.
It is an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
A legal obligation arising from a contract, agreement or other form of undertaking by UNDP or based on a liability recognized by UNDP, either against the resources of the current year in respect to UNDP programme activities or against the current budget period in respect to the institutional budget
Any input into the procurement process by a party with vested interests in the outcome creates a conflict of interest. Conflicts can be actual, perceived or potential.
The legal instrument that will be signed by and between the UNDP and the successful Offeror/Proposer, all the attached documents thereto, including the General Terms and Conditions (GTC) and the Appendices.
Cash or in-kind resources (the latter being in the form of goods, services, or real property) provided to UNDP. Contributions are used to cover UNDP programme activities as well as programme support, management and administration, and support to operational activities of the United Nations, including costs associated with the administration of contributions received for special purposes; costsharing - a co-financing modality under which contributions from Other resources can be received as a supplement to Regular resources for specific UNDP programme activities, under the relevant cooperation framework.
Corruption or corrupt practice is the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party
Data Sheet – the section of the Instructions to Offerors/Proposers used to reflect conditions of the tendering process that are specific to what is being procured at a given solicitation process.
Unless stated otherwise, means working days, which do not include weekends and/or holidays. A weekend is Saturday and Sunday. Holidays are those officially recognized by UNDP. If the last day of any period falls on a weekend or holiday, the term shall run until the end of the next day on which the Agency is officially open for business.
A formal declaration that a Respondent has become ineligible for a period of time to (a) be awarded and/or to partake in contracts financed, administered or executed by UNDP; (b) conduct new business with UNDP as an agent or representative of other vendors; (c) partake in discussions with UNDP regarding new contracts to be financed, administered or executed by UNDP. Exceptionally, the CPO may decide that the Respondent’s debarment shall be permanent.
Category of costs associated with “programmes” and “development effectiveness” activities which contribute to the effective delivery of development results, as follows:
a) programmes: category of costs associated with specific programme components or projects that contribute to delivery of development results contained in country/regional/global programme documents or other programming arrangements;
b) development effectiveness: category of costs associated with activities of a policy, advisory, technical and implementation nature that are needed for achievement of the objectives of programmes and projects in the focus areas of the organizations. These inputs are essential to the delivery of development results, and are not included in specific programme components or projects in country, regional or global programme documents.
A method of financing the budget of a partner country through a transfer of resources from an external financing agency to the national treasury of the partner government. The funds thus transferred are managed in accordance with the recipient’s budgetary procedures. This includes using the national regulatory framework for financial allocations, procurement and accounting systems.
The process under which certain cases determined to be of a low complexity are reviewed by the VRC Secretariat, rather than under the Panel Review Process.
Includes disbursements and accruals for goods and services received, and the use or impairment of assets, dependent on the implementation arrangement and in accordance with administrative instructions issued by the Comptroller for a financial period.
The call for an expression of interest is a notice used to assess interest in an upcoming solicitation for goods, works or services. Vendors are requested to express interest and provide information about products, services, resources, qualifications and experience before a fixed deadline. This method may be used to continually update a UNDP office’s vendor database, where procurement planning has forecasted future requirements of specific goods, services or civil works.
Forced labour refers to all work or service which is exacted by a vendor from any person under the menace of any penalty and for which the said person has not offered themself voluntarily
Forwarding agents, known also as freight forwarders or freight brokers, act as international freight forwarders, clearing agents or custom brokers to carry out the formalities and operations of consignment. Generally employed to receive consigned goods where UNDP staff may not be physically present, forwarding agents engage in the prompt clearance and collection of goods vulnerable to loss and pilferage. Business Units should forward to the respective forwarding agent all necessary documents (i.e., bill of lading, shipping instructions) for the release of goods in transit.
It is any act or omission, including a misrepresentation, whereby a vendor knowingly misrepresents or conceals a fact (a) in order to obtain an undue benefit or advantage (not limited to financial) or to avoid an obligation for itself, or a third party, and/or (b) in such a way as to cause an individual or entity to act, or fail to act, to his, her or its detriment.
Refers to the recruitment, transportation, transfer, harbouring or receipt of persons by a vendor, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation
Refers to the recruitment, transportation, transfer, harbouring or receipt of persons by a vendor, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation
The costs incurred by the organization in support of programmes or projects that cannot be directly attributed to such specific programmes or projects.
A formal declaration following the decision of the CPO that a Respondent is ineligible for a period of time to (a) be awarded and/or partake in contracts financed, administered or executed by UNDP, (b) conduct new business with UNDP as an agent or representative of other vendors, (c) partake in having discussions with UNDP regarding new contracts. Exceptionally, the ineligibility may be permanent.
The Ineligibility List is a central roster, hosted and maintained confidentially by the United Nations Global Marketplace (UNGM) as a protected electronic document that aggregates information provided by each participating entity, including UNDP. Vendors that are subject to sanctions that affect their eligibility, pursuant to sanctions proceedings, shall be entered into the Ineligibility List for a term starting upon notification of the CPO’s decision and ending once they are deemed to be rehabilitated. The Ineligibility List shall have restricted access, and shall not be published or otherwise distributed.
A Vendor who has been debarred by UNDP, and either (1) is the subject of a current period of debarment; or (2) has not requested to be reinstated as an active Vendor via a request for rehabilitation.
Innovation challenges are defined as prized challenges that Business Units (Country Offices) organize to solicit innovative ideas and solutions to address development challenges which cannot be achieved through traditional solicitation processes.
Covers the estimates as approved by the Executive Board relating to the activities and associated costs in the cost categories of development effectiveness, United Nations Development Coordination, management and special purpose.
Instructions to Offerors/Proposers – the complete set of documents which provides Offerors/Proposers with all information needed and procedures to be followed in the course of preparing their Offer/Proposal.
A temporary suspension of a Vendor’s eligibility to participate in new procurement processes, as further described in paragraph 66 of the Vendor Sanctions Policy to protect UNDP’s interests pending the completion of either an investigation into Proscribed Practices or the VRC process. Interim suspensions are internal measures that are not reported on the UNGM.
An invitation to bid is used to procure goods or works valued at US $200,000 or more. It does not require prospective bidders to specify the manner of production, technical approaches or management/supervision of required activities. The invitation to bid only requests details on costs to meet precise specifications for goods. The method may also be used in procuring construction works or services that can be quantitatively and qualitatively defined.
In instances of collaborative procurement, or when more than one Agency is involved in a specific procurement action which results in allegations that the vendor has been involved in Proscribed Practices, the relevant Agencies will choose a “Lead Agency” to represent them all in data gathering and analysis, investigation, and the sanctions proceedings against the vendor. The Agencies involved shall decide amongst themselves which is to act as the Lead Agency for the particular case. The Lead Agency will normally be the Agency (a) most directly impacted by the vendor’s activities and the Proscribed Practice(s); and/or (b) with the most resources at its disposal. All involved Agencies will collaborate with the Lead Agency. The Lead Agency will apply its own regulations, rules, policies and procedures to its activities in this regard.
The difference between current assets and current liabilities. In the specific context of UNDP, this shall normally be taken to mean the sum of working capital and reserves.
Categories of costs in which the primary function is the promotion of the identity, direction and well-being of an organization. These include executive direction, representation, external relations and partnerships, corporate communications, legal, oversight, audit, corporate evaluation, information technology, finance, administration, security and human resources. This includes both activities and associated costs of a recurring and non-recurring nature.
Material Deviation – any content or characteristic of the Offer that is significantly different from an essential aspect or requirement of the ITB/RFP, and (i) substantially alters the scope and quality of the requirements; (ii) limits the rights of UNDP and/or the obligations of the offeror; and (iii) adversely impacts the fairness and principles
The financial assistance provided to an intermediary which includes
nongovernmental or grass roots organizations in an amount not exceeding$150,000 for each individual grant.
Micro-purchasing is a simplified procurement method for readily available goods, standardized services and small works, where contract amounts do not exceed US $5,000. Such purchases may constitute a significant volume of UNDP’s total procurement, but their aggregate value remains relatively low. A simplified process is preferred to reduce transaction costs.
Five basic modes of freight transportation – sea, rail, road, air and parcel post – are used, either individually or in combination, in international transportation. Business Units should consider modes of transport that are both economical and efficient. In general, rail, road and air transport costs are comparatively higher than freight by sea, thus UNDP recommends sea transport. To ensure sound delivery however, it is advisable to select a conference liner, which operates along definite routes and pre-determined ports of call.
While international competition is the preferred mode of procurement in UNDP, national competition may be allowed when the value of the requirement is less than US $200,000, and when any one or any combination of the following circumstances also exists: a. The required goods/services/works are available locally at about the same or lower prices compared to those of comparable quality from the global market. b. The requirement is for construction works that are expected to be geographically scattered in various parts of a country and intensive in the use of local labour, and the country has a sufficient base of contractors with the qualifications and competence needed to complete the works. c. Services needed require a substantive depth of knowledge and understanding of the local environment, culture, language, socio-political dynamics or national systems that an international entity will probably not possess. d. There is a very low probability that an international entity will be interested in submitting an offer or partnering with national entities, so that the administrative and financial costs of opening to the international market will not yield any benefit.
Obstruction or Obstructive Practice is an act or omission by a vendor that prevents or hinders UNDP’s data gathering and analysis in a particular case.
The Offeror’s response to the Invitation to Offer, including the Offer Submission Form, Technical Offer and Price Schedule and all other documentation attached to the Offer.
An Offer of Settlement, as further described in paragraphs 44 and 45 below. An OoS may be made by UNDP to the Respondent(s) under either the DRP and PRP
This sourcing method creates awareness in the business community of an opportunity related to a specific project, and requires advertisement in an appropriate medium (including, but not limited to, the UNDP global website) depending on the nature of the procurement activity. In an open competitive bidding process, there will be no shortlisted companies; consequently, all vendors wishing to participate in the process are invited to do so.
Opening competition to the international market provides equal opportunity to all eligible vendors. It entails a public advertisement in globally accessible media. The following conditions must be met: a. The procurement opportunity should be advertised on UNDP’s corporate website; b. It should be posted in the UN Global Marketplace (i.e., www.ungm.org); and c. Advertisements should remain online for a minimum of two weeks.
The VRC may recommend, and the CPO may decide to impose, other sanctions that it finds appropriate, including requiring that future contracts with the Vendor reflect special conditions, or that the vendor compensate UNDP for any loses and/or costs sustained or incurred by it as a result of the Vendor’s involvement in a Proscribed Practice.
The process under which cases are reviewed by a panel composed of UNDP staff who determine the recommendation(s) to be made to the Chief Procurement Officer (CPO).
UNDP staff and other persons engaged by UNDP under other contractual arrangements to perform services for UNDP programme activities or for programme support.
Particularly for high value or complex procurement requirements, a solicitation may be limited only to vendors who meet established criteria for capacity and resources, based on a prequalification process. The prequalification process aims to ensure that solicitation documents are extended only to those with adequate capacity and resources to provide the requisite goods, services or perform civil works.
Limited international competition is conducted by narrowing the competitive field to a short list of prospective offerors. This is pre-determined through a non-discriminatory evaluation of qualifications. Such a process may involve various sourcing methods, such as: a. Use of existing rosters; b. Shortlisting from previous rounds of prequalification or expressions of interest from another selection process, assuming similar goods or services; c. Previous vendors of known satisfactory performance; d. Referrals of vendors from other UN entities; e. Publicly accessible trade books and online databases; f. Advertised call for expressions of interest; g. Conventional business directories
Procurement Review Committees render independent written advice and recommendations on a procurement action and the proposed commitment of funds to the person approving the procurement action. The review committees have been established at three levels. Contracts, Assets and Procurement Committee (CAP); Regional Advisory Committee on Procurement (RACP); Advisory Committee on Procurement (ACP).