Nigeria

How we operate

• Procurement process
• Procurement methods
• Evaluation of offers
• Contract modalities/Types of contracts
• Conditions of contract

Procurement Process

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Procurement methods

UNDP Procurement is based on competitive bidding. Depending on the type, complexity, size and value of the project and its procurement elements, commonly used methods of solicitation include:

Request for Quotation (RFQ)

An RFQ is an informal invitation to submit a quotation, usually for goods/services/civil works at a value between US$2,500 and $100,000.

Prices, and other commercial terms and conditions are requested and award is made to the lowest priced technically acceptable offer.

Invitation to Bid (ITB)

An ITB is a formal invitation to submit a bid, usually associated with requirements that are clearly and concisely defined, with an estimated procurement value of US$100,000 or more. Normally price is the sole determinant in making an award. Where all technical criteria are met, award is made to the lowest bidder.

Request for Proposal (RFP)

An RFP is a formal request to submit a proposal, usually associated with requirements for services, which can not be clearly or concisely defined, with an estimated procurement value of US$ 100,000 or more. Price is only one of several factors comprising the evaluation criteria. Award is made to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents and is evaluated to be the lowest cost to UNDP.

In some cases, exceptions to competition are being made and direct contracting is used. This usually happens when a Long-Term Agreement (LTA) is in place, either globally (IAPSO or HQ) or locally (at country office level).

For values less than US$2,500, country offices may engage in local Shopping.

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Evaluation of offers

Depending on the procurement method, different factors take on the key role in the evaluation process.

When evaluating RFQs and ITBs, the price is the most important element. In contrast to this, and RFP requires a technical evaluation. The technical component primarily determines whether the proposal will be accepted or declined. Additionally, UNDP evaluates its products and services based on the following criteria:

Goods:

• Meet technical specifications
• Delivery
• Environmentally sound
• Quality Assurance
• Accuracy of documentation
• Speed of response
• Customer service

Services:

• Provides Technical Solutions
• Competency

see "Hiring Consultants" for more evaluation criteria

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Contract modalities/Types of contracts

UNDP has several contract modalities, amongst others:

• Lump Sum (Fixed Price Contract)
• Time and Material Contract
• Retainer Fee contract
• Percentage Contracts
• Long Term Agreements (Call off through contracts)

Long-term agreements (LTA) reduce administrative efforts by a single tendering exercise over the life of the arrangement. They are awarded on a 1-year renewable basis and exist on the country level as well as globally, administered by HQ.

Advantages include:

• quality assurance and legal requirements will have been dealt with at the outset
• the supplier benefits in terms of planning stock levels and continuity of supply
• a mutually beneficial longer-term working relationship can be established

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Conditions of Contract

In order to be a future supplier for the United Nations Development Programme, you have to accept our General Terms and Conditions. Depending on your deliverables, the following applies:

• General Terms and Conditions for Goods

• General Conditions of Contract for Professional Services

• UNDP General Conditions for Purchase Orders

• General Conditions of Contract for Civil Works

• Supplier Code of Conduct

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