UN Procurement

The UN procurement process involves various formalities and procedures to ensure transparency and efficiency. The primary goal of UN procurement is to secure the best value for money for goods and services at the right time to support the organization’s work. Below, you will find details about the procurement process, sustainability requirements, and essential considerations for successfully supplying to the UN.

What does the UN Procure?

The United Nations procures a vast range of goods and services to support its global operations. These procurement needs reflect the organization’s diverse activities in humanitarian aid, peacekeeping, sustainable development, and emergency response.

  • Healthcare Supplies and Services: Pharmaceuticals, medical devices, laboratory equipment, and healthcare services are procured by organizations like UNICEF, the World Health Organization (WHO), and UNFPA to support health initiatives and emergency medical responses.
  • Food and Nutrition: Emergency food supplies, agricultural inputs, seeds, and nutrition programs are managed by the World Food Programme (WFP) and the Food and Agriculture Organization (FAO), which provide food assistance and support sustainable agriculture.
  • Construction and Infrastructure: Building materials, prefabricated buildings, engineering services, and construction projects are procured by UNOPS and peacekeeping missions to create shelters, schools, clinics, and other infrastructure.
  • Transportation and Logistics: Vehicles, aircraft, fuel, and logistics services are acquired by WFP and the United Nations Procurement Division (UNPD) to support field missions and humanitarian logistics.
  • IT and Telecommunications: Software, hardware, communication devices, and IT services are procured by organizations like UNDP, UNOPS, and UNICEF to enhance program delivery and internal operations.
  • Energy Solutions: Renewable energy products such as solar panels, generators, and sustainable energy systems are often sourced by UNDP, UNOPS, and UNEP to promote sustainability and energy access in field operations.
  • Water, Sanitation, and Hygiene (WASH): Water treatment systems, hygiene kits, and sanitation infrastructure are procured by UNICEF, UNHCR, and WHO to support displaced populations and communities in need.
  • Administrative and Operational Services: Office supplies, security services, travel arrangements, and other administrative support are managed by the United Nations Secretariat, UNOPS, and other UN agencies to enable smooth operations.

These are just some of the many categories of goods and services the UN procures. The organization’s procurement needs are diverse and ever-changing, reflecting its work across a wide range of sectors and its commitment to achieving the Sustainable Development Goals (SDGs).

UNGM: A Key Tool for the UN and Suppliers

The United Nations Global Marketplace (UNGM) serves as the primary procurement portal for UN organizations to publish procurement opportunities and connect with suppliers. For vendors, UNGM offers a centralized resource to stay informed about opportunities and ensure they do not miss any relevant tenders.

However, it is important to note that not all UN procurement opportunities are listed on UNGM. Companies should adopt a multi-faceted approach to ensure they capture the full range of opportunities.

  • Agency-specific databases: Some UN organizations maintain their own supplier databases that are not perfectly integrated with UNGM. Vendors should contact these agencies directly and register in their specific systems.
  • Local Agency websites: Regularly checking the websites of individual UN agencies can help businesses discover tenders that may not be listed on UNGM.
  • Development Business Portal: For projects financed by the UN, governments, and development banks, the Development Business portal provides additional opportunities.
  • Agency-specific procurement procedures: Each UN agency has its own mission and may handle procurement differently. Familiarizing yourself with these procedures can be beneficial.

Levels of UN Procurement

The UN procurement takes place on different levels within the UN organization:

  • Central Level: Procurement staff at the central level oversee broader procurement categories and manage Long Term Agreements (LTAs). They also act as a valuable point of contact, helping suppliers connect with relevant local offices or thematic experts.
  • Thematic Experts: These experts influence the guidelines and standards for UN operations and procurement. Their work ensures that procurement practices align with the organization’s overall objectives and principles.
  • Local Level: Personnel at local offices manage specific projects and procurement needs. Most procurement decision-making occurs at this level, as country offices are responsible for assessing bids and awarding contracts.

The UN Procurement Process

The UN procurement process is structured into four main steps: procurement 10.png

Solicitation methods used by the UN

The UN employs three main solicitation methods based on the value and complexity of the procurement:

Request for Quotation (RFQ):

  • Used for procurements valued at or below USD 150,000.
  • Involves clear and specific requirements for goods or services.
  • Bids must be submitted electronically to a centralized email address.
  • Contracts are awarded to the lowest acceptable bid meeting technical requirements.

Invitation to Bid (ITB):

  • Used for procurements over USD 150,000 with clearly defined requirements.
  • Vendors submit a single document containing both technical and financial proposals.
  • Contracts are awarded based on the lowest acceptable bid meeting technical requirements.

Request for Proposal (RFP):

  • Used for services or products with requirements that may vary or are not easily quantified.
  • Vendors submit separate technical and financial proposals.
  • Contracts are awarded based on a combined evaluation of technical solutions and price, following criteria specified in the Solicitation Documents.

The role of Trading Houses in UN procurement

Trading houses play a significant role in facilitating UN procurement, enabling the organization to source products and services efficiently. These trading houses collectively account for over 500 million USD per year in procurement value, particularly from European suppliers.

Trading houses offer:

  • Expertise in navigating UN procurement procedures, writing bids, and securing tenders.
  • Networks and specialized knowledge about the regions and contexts in which the UN operates.
  • Alignment with UN requirements, often formalized through Long Term Agreements.

Unlike traditional distributors, trading houses respond directly to UN needs and specifications outlined in tenders rather than promoting specific products. They primarily operate in sectors such as life sciences, IT, vehicles, and other high-demand categories.

Collaborating with a trading house can create new sales opportunities and channels for suppliers looking to engage with the UN.

Sustainability in UN Procurement

The UN integrates sustainability into its procurement practices to reduce its environmental impact while promoting economic and social development.

  • Sustainable Development Goals (SDGs): The UN emphasizes SDG 12, focusing on sustainable consumption and production patterns, with public procurement as a key strategy.
  • UN Supplier Code of Conduct: This code outlines the values and principles the UN expects its suppliers to uphold.
  • ISO 20400: The UN adheres to this global standard for sustainable procurement, reinforcing its commitment to social responsibility.

Do you want to learn about the different UN organizations? Visit the "The Different UN Organizations" section.