Procurement Support Services

for the Ministry of Health of Ukraine

November 12, 2015Kyiv, Ukraine

UNDP works in more than 170 countries and territories, helping to achieve the eradication of poverty, and the reduction of inequalities and exclusion. We help countries to develop policies, leadership skills, partnering abilities, institutional capabilities and build resilience in order to sustain development results.

UNDP focuses on helping countries build and share solutions in three main areas:

•Sustainable development•Democratic governance and peacebuilding•Climate and disaster resilience.

A world of development experience

In order to fulfill its mandate and achieve its vision of empowered lives and resilient nations, UNDP must procure a significant volume of goods and services. As a public organization entrusted with donor funds and committed to supporting developing economies, UNDP abides by the following principles:

•Best Value for Money, which consists of the selection of the offer that best meets the end-users’ needs and that presents the best return on investment. Best Value for Money is the result of several factors, including quality, experience, the vendor’s reputation, life-cycle costs and benefits, and parameters that measure how well the good or service allows the organization to meet its social, environmental or other strategic objectives.

•Fairness, Integrity and Transparency, which ensures that competitive processes are fair, open, and rules-based. All potential vendors should be treated equally, and the process should feature clear evaluation criteria, unambiguous solicitation instructions, realistic requirements, and rules and procedures that are easy to understand.

•Effective International Competition, understood as giving all potential vendors timely and adequate information on UNDP requirements, as well as equal opportunity to participate in procurement actions, and restricting them only when it is absolutely necessary to achieve UNDP development goals.

•In the best interest of UNDP, which means that any business transactions must conform to the mandates and principles of UNDP and the United Nations.

Procurement at UNDP

• UNDP buys goods and services from each of its 166 Country Offices, as well as UNDP Headquarters in New York. Responsibility for procurement is decentralized, meaning that the entire procurement cycle – from sourcing to contract management – is done locally.

• 3 levels of oversight/contract review committees exist in UNDP The Advisory Committee on Procurement (ACP) is an independent unit within the Bureau of Management that approves all high-value contracts.

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PROGRAMS FOR PROCUREMENT FOR THE MINISTRY OF HEALTH OF UKRAINE

•Test systems for the diagnosis of HIV, ARV maintenance and monitoring of HIV infection, determination of virus resistance, organization of referent studies

•Medicines and foodstuffs for children with orphan diseases

•Tuberculosis medicines

•Tests, consumables for diagnostics of tuberculosis

•Medicines for children with hemophilia A and B or Willebrand disease

•Medicines for children with chronic vital hepatitis

•Medicines for patients with viral hepatitis B and C.

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SOLICITATION PROCESS

Open competition: the procurement opportunity will be advertised or published in UNDP’s corporate website, lasting for a minimum continuous period of two (2) weeks:

1) www.procurement-notices.undp.org 2) www.ungm.org

And at the UNDP Ukraine corporate website: http://www.ua.undp.org/content/ukraine/en/home/operations/procurement.html

Contacts for clarifications on procurement issues: procurement.ua@undp.org

Pre-bidding conference: when appropriate, a Pre-bidding conference will be conducted at the date, time and location specified in the solicitation document.

Minutes and/or Q&A: will be posted on the UNDP website and disseminated to the individual firms who have registered or expressed interest with the contract, whether or not they attended the conference.

Results notification: will be sent to all bidders who submitted their bids. All contracts above 100 k USD will also be published at UNDP Procurement Notices website.

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PROCUREMENT METHODS that may be used in this project:

•A Request for Quotation (RFQ): informal invitation to submit a quotation, used for goods/services/civil works valued between USD 5,000 and USD 100,000. Depending on the complexity of the requirement, vendors will be given 3 to 10 business days to respond to an RFQ. Prices, and other commercial terms and conditions are requested and award is made to the lowest priced technically acceptable offer.

Template of RFQ solicitation document:

•An Invitation to Bid (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 USD 100,000 or more. Where all technical criteria are met, an award is made to the lowest bidder. Vendors will normally be given 15 business days or more to respond, depending on the complexity of the requirement.

Template of ITB solicitation document:

•Some products will be procured via existing corporate long-term agreements (mostly diagnostic products). Long-term agreement are established by UNDP as a result of an open competition.

•Exceptionally and when it is deemed in the best interest of UNDP, goods may be sourced through Direct Contracting (e.g. single source, exigency etc.)

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RFQ

ITB

CONTENTS OF BID

Bidders are required to complete, sign and submit the following documents:

1.Bid Submission Form;2.Documents Establishing the Eligibility and Qualifications of the Bidder;3.Technical Bid;4.Price Schedule;5.Bid Security, if requested;6.Any attachments and/or appendices to the Bid (including all those required under solicitation document).

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QUALIFICATIONS AND ELIGIBILITY OF BIDDERS

Any bidder complying with qualification criteria allowed to participate in the tender process. All qualified UNDP vendors must meet the following commercial criteria:

•Have adequate material and financial resources to perform the contract;

•Be able to comply fully and effectively with UNDP General Terms and Conditions of Contract:http://www.undp.org/content/undp/en/home/operations/procurement/how_we_buy/

•Have the necessary organization, facilities, experience, accounting and operational controls; adequate insurance and technical skills (including, as needed, quality controls, property and production control systems, standards and safety programmes applicable to goods produced);

•Not temporarily suspended or debarred by UNDP or another UN agency, fund or programme.

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BIDDING PROCESS:

•Bidders will be given an opportunity to offer all or some products.

•Medicinal products must be registered in Ukraine by the time of supply and correspond to quality criteria that will be set in the solicitation documents on item-by-item basis.

•QC/testing may be organized for some of the items where deemed reasonable by UNDP.

•Detailed administrative and technical requirements will be elaborated per each good/programme separately and stated in the solicitation document.

•Bid validity period stipulated in the solicitation document must be kept.

•Language of the bid: one of the choice of English, Ukrainian or Russian. English preferred but not mandatory.

•Electronic submission of bid.

•Late bids will not be accepted.

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SECURITY INSTRUMENTS

1. Bid Security, if requested: bank guarantee, which binds an offeror to UNDP and fulfill the commitments they have made in their offer.

2. If the contract calls for an advance payment exceeding USD 30,000 or 20%, the Supplier shall be asked to provide a bank guarantee.

3. Performance security in an amount sufficient to protect UNDP in the case of breach of contract by the Contractor. Where a Performance Security will be required, the submission of the said document, and the confirmation of its acceptance by UNDP, shall be a condition for the effectivity of the Contract that will be signed by and between the successful Bidder and UNDP.

4. Liquidated damages will be applied.

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CONTRACTUAL TERMS:

• UNDP will issue a Purchase Order including UNDP General Terms and Conditions for Goods to the winning bidder/s.

• Currencies: USD or UAH. International companies will be paid in USD; residents of Ukraine – in UAH. If the bid was submitted in USD, official United Nations Operational Rate of Exchange (treasury.un.org) on the day of invoice submission/date of payment will be used for currency exchange.

• Standard UNDP payment terms: within 30 days upon receipt of shipping documents and invoices. Advance payment is typically not in use but may be allowed up to 20%. Progress payments possible in case deliveries splitted into several shipments.

• All suppliers will be expected to deliver the goods in accordance with their bid and the terms of the contract.

• UNDP, as a subsidiary organ of the United Nations, is exempt from direct taxes such as income tax, and is entitled to reimbursement of indirect taxes, such as sales tax and VAT, on important purchases.

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QUESTIONS?

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