Types of competition
Depending on the nature and the size of the project and its procurement elements, UNDP may use any of the following competitive methods set out in relevant UNDP guidelines to procure goods, civil works and services:

• Open International Competition (OIC)
• Limited International Competition (LIC)
• Local and/or National Competition (LNC)

UNDP regards OIC as the preferred method of procurement with its overall ability to achieve all principal objectives of the intended programme. However, in many circumstances where it is determined that OIC is not feasible, staff may employ use of an alternative method. In such, UNDP requires its staff to ensure that the selected method is both economic and efficient (i.e., obtains the best value for money). All methods of procurement irrespectively must be open and fair to all interested bidders to the extent possible.

Open International Competition (OIC)
OIC intends to provide all eligible and qualified bidders adequate and timely notification of UNDP's requirements and to provide them equal access and fair opportunity to compete for contracts of required goods, civil works or services valued at US$ 100,000 or more. Initiated by an advertisement, OIC invites interested bidders to request the solicitation documents from the Business Unit. For contracts valued between US$ 100,000 and US$ 500,000, advertisements should be posted on Inter-Agency Procurement Services Office's (IAPSO) website and/or as a Procurement Notice on UNDP's website for ten to thirty days depending on the complexity and nature of the goods, civil works or services to be obtained. For contracts valued greater than US$ 500,000, advertisements should in addition be made in United Nations Development Business (UNDB) and/or a relevant publication of wide international circulation. UNDB is a publication providing comprehensive information on opportunities to supply goods, civil works and services for projects financed by the United Nations, governments and International Financial Institutions. UNDB is published both online and in paper form. The paper version is printed twice monthly and the online version is updated several times a week.

Limited International Competition (LIC)
LIC narrows competition amongst an ongoing shortlist of qualified suppliers selected in a non-discriminate manner by the Business Unit either from rosters, prequalification, expressions of interest, etc. LIC is appropriate where OIC is unsuitable, exigent circumstances persist or the global market retains a limited availability of the required goods, civil works or services.

Local and/or National Competition (LNC)
LNC, unlike the aforementioned international competitive methods, is generally exercised for procurement in the country where the programme is to be deployed. Business Units may use local competition where: Civil works are scattered geographically or spread over time and the country has a sufficient base of suppliers (i.e. a minimum of three); Professional services are valued at US$ 30,000 or less; Goods are available locally at prices below the global market price; or Programmes require knowledge of the local/national system Where applicable, advertisements shall be published in the national gazette and/or on the website to ensure thorough competition.

Solicitation
The types of solicitation practiced by UNDP are as follows:

Expression of Interest (EOI): Written communication by a supplier to provide information about its products, resources, qualifications and experience, in response to a particular EOI.

Request for Quotation (RFQ): Commonly used for the procurement of goods, services and/or civil works where the contract value is between US$ 2,500 and US$ 100,000, the product has standard specifications, and is already available on the market.

Invitation to Bid (ITB): Formal solicitation that is generally used for the procurement of mainly goods valued above US$ 100,000. To ensure economy and efficiency we evaluate bids amongst a minimum of three responsive and qualified offers, and the award is made to the lowest priced acceptable offer.

Request for Proposal (RFP): Formal solicitation that is used for the procurement of all contracts valued above US$ 100,000, where the requirements possibly met in various ways. The overall best solution will win the contract, and not necessarily the solution with the lowest price.

Local shopping: Used for amounts less than $ 2,500 and is based on the best value for money principle.

UNDP Reviewing Principles
UNDP reviews quotations, bids and proposals according to the following principles:

• Evaluation of quotations
• Opening of bids or proposals (USD 100 000 +)
• Evaluation of bids
• Evaluation of proposals

Evaluation of Quotations
Upon the receipt of quotations (RFQ), the offers should be opened and assessed in the presence of an evaluation team appointed by the Business Unit. A RFQ evaluation team should generally be comprised of a minimum three members to ensure fairness and transparency. All quotations should be evaluated against the minimum selection criteria to determine if goods, civil works or services conform to designated criteria, and if the Supplier is reliable. In the case of quotations, price serves as the overriding measure upon which to award a contract unless the offer is rejected for a specific reason (e.g. Offeror failed to quote on the product requested or failed to deliver the quote within the specified time frame).

Opening of Bids or Proposals (USD 100,000+)
Where bids have been obtained pursuant to an invitation to bid (ITB), such bids should be opened publicly at the time and place specified in the ITB. All duly received bids should be accompanied by an abstract indicating the following:

Offeror’s name and place of business;
Bid price and currency;
Price of alternate bids, if applicable;
Bid security, if requested; and
Discounts, if any proposed by Offeror.

Where Offerors have submitted more than one bid or proposal, the Offeror must clearly indicate which tender to consider. Where this is not evident, the bid or proposal that provides the most advantageous terms to the UNDP will be considered.

Evaluation of Bids
Upon the receipt and opening of bids, the offers are to be evaluated by an evaluation team appointed by the Business Unit. An evaluation team should be comprised of three to five members, providing objective and independent advice and knowledge of the specific subject matter. The evaluation team should in addition be chaired by an experienced individual offering varied perspectives and sound analytical support to the RR or Head of the Business Unit on procurement activities. All bids must be evaluated against the specifications, statement of works or TOR stipulated in the solicitation documents.

Only bids offering goods, civil works or services with the characteristics meeting or exceeding those in the specifications and commercial terms shall be considered acceptable. In the case of bids, price serves as the overriding measure upon which to award a contract unless the offer is rejected for a specific reason (e.g. Offeror failed to bid on the product, civil works or services requested or failed to deliver the bid within the specified time frame).

Where Offerors have submitted more than one bid or proposal, the Offeror must clearly indicate which tender to consider. Where this is not evident, the bid or proposal that provides the most advantageous terms to the UNDP will be considered.

Evaluation of Proposals
Upon the receipt and opening of proposals, all offers are to be evaluated by an evaluation team appointed by the Business Unit. An evaluation team should be comprised of three to five members, providing objective and independent advice and knowledge of the specific subject matter. The evaluation team should in addition be chaired by an experienced individual offering varied perspectives and sound analytical support to the RR or Head of the Business Unit on procurement activities. Business Units have the following two options by which to score proposals:

Lowest Price: a proposal shall be considered non-responsive and rejected, if it fails to substantially satisfy the specifications, SOW or TOR, or it fails to achieve a minimum technical score as specified in the RFP. An Offeror’s response to the solicitation document is evaluated and points are attributed based on how well they mee t the defined desirable criteria. An offer should be considered qualified and responsive if it receives a score of at least 70 percent on the technical proposal. Any offers, which do not meet this requirement, must be rejected as being non-responsive.

The financial proposal of only those Offerors obtaining the minimum 70 percent score during the technical evaluation should be opened. 

Cumulative Analysis: under the cumulative analysis scheme, a total score is obtained upon the combination of weighted technical and financial attributes. An Offeror’s response to the solicitation document is evaluated and points are attributed based on how well they meet the defined desirable criteria. The weight of financial proposals should take into account the complexity of the assignment and its relative proportion to quality. The designated weightings of both the technical and financial proposals should be specified in the RFP at the time of solicitation.

Green Procurement
As parts of its commitment to the environment and sustainable management of natural resources, UNDP actively promotes and implements Green Procurement by requiring its staff to conduct all activities, including contracting with other entities, in a resource-efficient manner. UNDP's Green Procurement policy is based upon the following four strategies: (i) re-thinking the requirements to reduce environmental impact; (ii) reduce materials consumption; (iii) recycle materials/waste and (iv)reduce energy consumption.