Procurement Notice

Office Contractors

Special Service Agreements (SSA) over US$ 30,000 

Long Term Agreements (LTA)                      

Contractor	Remuneration	Agreement details
Hemayat az Zendanian	US$ 1,055,880	HIV/AIDS - Harm reduction services in prisons Contract for 2008 and 2009
Eefachy Kar Company	US$ 121,000	UN Common Services -Ancillary Services, Contract for 2008
Atlas Travel Agency + Holiday Travel Agency	US$ 360,000	UN Common Services - Travel Services, Contract for 2008 and 2009

Contract awards above US$ 100,000 in 2007

Procurement Process

To promote transparent and fair competition, UNDP Iran conducts competitive procurement process through public advertising for all procurement above $30,000 and for Long-Term Agreements. For procurement of goods above USD 100.000, in most cases we use the services of UNDP procurement agent and LTA holders which in turn if applicable conduct international bidding.

UNDP procurement principles

UNDP manages procurement activities by adhering to the following general principles:

• Best value for money

• Fairness, integrity and transparency

• Effective international competition

• The interest of UNDP

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.

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 “R” strategies:

• Re-thinking the requirements to reduce environmental impact

• Reduce materials consumption

• Recycle materials/waste

• Reduce energy consumption

UNDP is therefore selective in its choice of products, processes and services, taking into consideration the effects of energy consumption, toxicity, ozone depletions, radiations, and the use of recycled materials.