In general, public procurement differs from procurement amongst private entities in
the formality and measures applied to guarantee the observance of the governing
principles, as listed above in the case of UNDP. For an easy overview, the following chart
outlines the major steps applicable to UNDP, but it also reflects generally for any public
procurement.
Strategic analysis and procurement plan: Identifying needs and developing a strategic approach
to the procurement thereof through appropriate and timely planning are key elements
to successful procurement, regardless of whether it is goods and/or services. Early and
detailed planning should ideally address challenges in procurement and facilitate efficient,
effective, and transparent procurement. Next chapter is dedicated to this fundamental
step of strategic planning in procurement.
In accordance with the procurement plan and strategy, the procurement action will
initiate with a request being defined through Technical Specifications (for Goods and Equipment)
or Statement of Works (SoW for Works) or Terms of Reference (ToR for Services). In practical terms, this
is typically prepared and finalized with the involvement of procurement personnel and
approved, including the allocation of dedicated funding being assured.
Thereafter a method of procurement or a modality by which to solicit
offers for the required goods, works and/or services must be selected
depending on the nature and value/size of the project and its procurement
elements. Methods of solicitation
in UNDP, for example, are 1) Requests For
Quotations; 2) Invitations To Bid; 3) Requests
For Proposals; and 4) Local Shopping. Such
methods involve different levels of formality,
complexity and process. They can also target
different scopes of supply markets, being the
process based on either open international
competition, limited international competition
or local and/or national competition.
The tender (bidding) period initiates with the issuance/
publication of the Solicitation documents,
which will include among other
sections, the corresponding instructions
to bidders, terms and conditions, technical
specifications or TORs/SOWs, price schedule,
and evaluation criteria. Also essential aspects
as technical, commercial and qualification
documents to be provided; quantities,
terms of delivery and conditions are detailed,
contributing to minimizing risks and
ensuring quality.
Once the bidding period closes, bids received will be correspondingly opened and handed
over to procurement staff for evaluation. UNDP defines Evaluation of Bids, as “The process of
assessing offers in accordance with the established evaluation method and evaluation criteria, with a view to obtain best
value for money for the organisation. The process needs to be conducted in a fair and transparent manner to ensure equal
treatment of all bidders”.
Evaluation results in the selection of supplier/s considering the specified evaluation
criteria and based on procurement principles including best value for money. A Contract
or Purchase Order can be awarded to the selected supplier/s only following internal approval
from the corresponding contract committees.
If necessary negotiations may be conducted with the selected supplier to finalise matters
before a contract or purchase order is issued.
Contract Administration or Management is often an ignored but important stage of the
procurement process to ensure that the time, cost and quality criteria are met. This will
involve monitoring and liaison as necessary with the supplier and end user to ensure that
all parties in a contract fully understand and fulfil their respective obligations.
