How does UNDP do business
Depending on the nature and size of the project and its procurement elements, UNDP may use any of the following competitive methods set out in these Guidelines to procure goods, civil works or services. Commonly used competitive methods include:
Open International Competition
Limited International Competition
Local and/or National Competition
UNDP regards open international competition (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 Offerors to the extent possible.
UNDP Procurement Principles
The following four principles have been established as part of UNDP's Financial Rules and Regulations and are key to UNDP's procurement process:
Best Value for Money
Fairness, Integrity, Transparency
Effective International Competition
The Interest of UNDP
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.
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.
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.
In some cases, exceptions to competition are 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 the country office level).
For values less than US$2,500, UNDP Ghana may engage by soliciting price assessments.