Procurement Methods
UNDP Lao procures goods and services through competitive solicitations. The following methods are used for the procurement of goods and services:
Request for Quotation (RFQ):
The most flexible and least formal method that is applied for procuring goods, services and/or works. RFQs call for a written quotation. RFQ applies to contracts exceeding the range $2,500 but less than $100,000.
Invitation to Bid (ITB):
An ITB is normally used whenever the entity is not required to propose technical approaches to a project activity, or to offer management or supervision of an activity. ITBs are used when the entity is to provide its cost requirements to meet precise specifications sought from UNDP. This is normally the case when UNDP buys goods. It may also apply to work contracts and services that can be expressed quantitatively and qualitatively. ITB applies to contracts exceeding $100,000.
Request for Proposal (RFP):
RFP is used when the inputs and/or outputs cannot be quantitatively and qualitatively expressed at the time the invitation is made, as for example consulting or similar services are sought. A RFP may also be used for purchase of complex goods when you are not sure of the functional specifications and wish to seek proposals. RFP applies to contracts exceeding $100,000.00. In some cases, exceptions to competition are being made and direct contracting is used. This usually happens when a Long-Term Agreement (LTA) is in place, either globally (PSO or HQ) or locally (at country office level). For values less than US$2,500, country offices may engage in local Shopping.
Evaluation of offers:
Depending on the procurement method, different factors take on the key role in the evaluation process. When evaluating RFQs and ITBs, the price is the most important element. In contrast to this, and RFP requires a technical evaluation. The technical component primarily determines whether the proposal will be accepted or declined. Additionally, UNDP evaluates its products and services based on the following criteria:
Goods:
Services:
Provides Technical Solutions Competency
Conditions of Contract
In order to be a future supplier for the United Nations Development Programme, you have to accept our General Terms and Conditions. Depending on your deliverables, the following applies: General Terms and Conditions for Goods General Conditions of Contract for Professional Services UNDP General Conditions for Purchase Orders General Conditions of Contract for Civil Works Supplier Code of Conduct
Lao PDR
