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Procurement Methods

I. Requesting competitive quotations
Competitive quotations are requested when an intended commitment to a single supplier is less than €20,000. Quotations will normally be requested from several firms or organizations. Quotations shall be submitted in writing.

II. Requesting competitive proposals/inviting competitive bids  
Calling for competitive proposals/bids is used when an intended commitment to a single supplier from €20,000 and higher; applying  either of the two formal procurement processes:

  • Invitation to Bid (ITB), which is used for procurement of goods, services and work of standard and firm specifications (very clearly defined or continuously used deliverables), and
  • Request for Proposal (RFP), which is used for procurement of deliverables that cannot be quantitatively or qualitatively expressed in sufficient details to allow use of ITB at the time the solicitation documents are issued, such as for professional services, combination of complex technical services and equipment, etc.

Competitive proposals/bids for intended commitments in value from €70,000 up to €300,000 shall be submitted in a sealed envelope and for intended commitments in value from €300,000 or higher, in two sealed envelopes, one of which is a technical offer, and the other, a commercial offer.

Competitive proposals/bids are normally invited using open international solicitation. In such cases solicitation documents are placed on the external Websites of UNIDO, UNGM (UN Global Market Place), other Websites as may be relevant, requesting qualified suppliers to submit   their offers.

Procurement may be limited to one or more countries if such limitation is stipulated in the agreement with the donor of funds or is attached to funds made available for a particular project by an international development organization.

III. Direct Contracting (Fin. Rule 109.5.5 “Exception to competition”)
Direct contracting (waiver of competition) may be used when:

  • There is sufficient evidence that no competitive market exists for the requirement, such as where a monopoly exists, where prices are fixed by legislation or government regulation, or where the requirement involves a proprietary product or service;
  • A standardization of supplies or equipment has been approved on the advice of the Procurement Committee, which renders competition impracticable;
  • The proposed contract relates to obtaining services that cannot be evaluated on the basis of objective criteria;
  • The proposed contract is the result of cooperation with the other organizations of the United Nations system;
  • There is a genuine and documented exigency of the activity concerned that does not permit the time required for the issuance of invitations to bid or calls for proposals;
  • The proposed contract is for purchase or rental of real estate;
  • The Managing Director/PSM may give written authorization to the Procurement Services Unit/OSS/PSM, at his or her discretion, to complete the acquisition process without formal solicitation, provided that the Managing Director/PSM, specifically determines through a due process that a formal solicitation shall not be applied ((Financial Rule 109.5.5 (a) (viii)). In such cases a written record shall be made providing appropriate reasons for such determination.