SC111 Umoja Procurement Overview. Umoja Procurement Overview Version 11 Last Modified : 14-Aug-13 Copyright United Nations

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1 SC111 Umoja Procurement Overview Umoja Procurement Overview Version 11 Last Modified : 14-Aug-13 1

2 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts and Purchase Orders Course Summary Course Assessment Course Survey 2

3 Course Overview The purpose of the Umoja Procurement Overview course is to explain the changes brought by Umoja to the Procurement process and to highlight its key impacts on other process areas. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Requisitioning Overview Umoja Master Data & Coding Block Overview Course Duration: 2 hours 3

4 Course Objectives After completing this course, you will be able to: Explain the Procurement process within Umoja List the key roles and responsibilities in Procurement Describe the different types of Master Data relevant for the Procurement process Recognize the impact of Umoja Supplier Relationship Management (SRM) on all Procurement processes Describe the major changes to the Solicitations and Contracts processes List the key changes that will take place after the Umoja implementation 4

5 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts Course Summary Course Assessment Course Survey 5

6 Module 1 Objectives After completing this module, you will be able to: Describe the types of Master Data relevant for the Procurement process Identify the existing databases that remain in use with Umoja Identify the purpose of the UN Contract Catalog 6

7 Key Terminology Key Term Material Master Service Master UN Contract Catalog United Nations Global Marketplace (UNGM) Description A central database containing information about all products procured, stored and shipped by UN. It can be used to populate Shopping Carts and is used in many other Supply Chain and Finance processes An equivalent database to Material Master for all services procured by UN A searchable catalogue of items tied to existing Systems Contracts from which Requisitioners can add items to their Shopping Carts The central database and entry point for all vendor registration and management. It facilitates the interchange of supplier information within the UN system. It is currently being upgraded to store all global and local commercial vendors 7

8 Key Terminology Key Term Business Partner (BP) Description A person or an organization that has a business interest with UN. A BP can be a commercial vendor that supplies goods or services to UN but also a UN agency or a staff member. Vendors registered in UNGM are replicated in Umoja (Umoja SRM and ECC) as BP s. BP s can also be UN organizations, UN Staff Members and other parties 8

9 Introduction to Procurement The Procurement process is central to the operations of the UN Secretariat. It is made up of the following activities: Procurement Maintain Master Data Requisition to Purchase Order (PO) Low Value Acquisition (LVA) Contract Administration Maintain Vendor Master Maintain Material/Service Master Create and approve Shopping Carts Create and award solicitations Create and approve LVA s Create, monitor and re-negotiate contracts 9

10 Legacy System Landscape With the implementation of Umoja, several legacy systems such as SUN and Mercury are to be replaced. Within Supply Chain/Procurement/Logistics, the diagram below represents the current state. Sun ProcurePlus IMIS HQ Mercury CATS Galileo Assets/Inventory Automated Interfaces Manual Data Updates/Uploads Systems Will Continue to Exist Systems to be Replaced 10

11 System Landscape with Umoja This diagram shows how the Umoja system will be integrated into this landscape. IMIS UNHQ UNGM UMOJA (Replaces SUN, Mercury, ProcurePlus and IMIS for payment) CATS CATS will be retained until such time that all UN Secretariat entities have implemented Umoja. Galileo Assets/Inventory Automated Interfaces Manual Data Updates/Uploads New System Introduced Umoja System 11

12 Legacy Vendor Database Commercial vendors were previously stored in several databases, including UNGM, ProcurePlus and multiple instances of Mercury. The landscape for the As-is Vendor database is displayed below. New Commercial Suppliers New Commercial Suppliers New Non-commercial Suppliers New Commercial Suppliers HQ Other UNGM Suppliers Procure + Vendors IMIS Other Stand Other Stand alone alone Databases Databases PK Mercury Global Mercury Mercury Local Local SUN Local SUN Local New Commercial Suppliers New Non-commercial Suppliers 12

13 Umoja Vendor Database With the implementation of Umoja, all commercial vendors are registered in UNGM*. These vendors are replicated automatically in Umoja (SRM and ECC) as BP's. This facilitates the Solicitation process as well as Contract creation, invoice and payment processing. PK PK staff may assist local vendors to register in UNGM Single Business Partner record regardless of role; becomes vendor upon contract awarding HQ UNGM Commercial Suppliers Umoja (SRM) Business Partners Umoja (ECC) New and updated policies Master Data Team reviews and approves Improved, comprehensive reports *The only exception applies to one time vendors for the LVA's who are registered in ECC. 13

14 Legacy Databases Integrated with Umoja In addition to UNGM, the following databases remain in place during the initial phases of Umoja: Galileo Continues to manage inventory, stock and equipment for DPKO/DFS in the near term Receives goods for inventory management purposes and Umoja receives goods for invoicing purposes Interface between Umoja and Galileo ensures accurate replication of data CATS Remains in place until all Secretariat entities are brought onto Umoja Automatically imports contract information (for example, NTE limit, expiry dates) from all systems Updates Umoja on status of systems contracts 14

15 UN Contract Catalog The UN Contract Catalog is centrally-maintained and allows simplified procurement from Systems or Local Contracts. In addition: Requisitioners may add items to their Shopping Cart directly from the UN Contract Catalog. Once approved, a PO will be automatically generated and sent to Procurement for their review When a contract is created, Buyers have the option to add that contract to the Catalog. Local Contracts are only viewable to Requisitoners assigned to that entity, while Systems Contracts are viewable globally 15

16 Material and Service Master Data The Material and Service Masters are Master Data objects that contain information about all products procured, stored and shipped by UN. Key components of the Material/Service Master include: Unique ID of a good or service Product ID Type of product or service. Matches the equivalent UNSPSC classification. Characteristics to enable material management Product Category Material Management Characteristics Material Master Data Objects Other physical or financial characteristics 16

17 Material and Service Master Data If a desired product is not available within the UN Contract Catalog, the Requisitioner may still reference materials from existing Material or Service Master records to help facilitate the Solicitations process. If the product does not exist, the Requisitioner will include a free text description referencing a Product Category. This will facilitate the Solicitations process for the Buyer

18 Learning Checkpoint 1 Identify the legacy databases that remain in place in addition to UNGM during the initial phases of Umoja. Select all that apply. A. Galileo B. CATS C. Sun D. Mercury 18

19 Learning Checkpoint 1 Identify the legacy databases that remain in place in addition to UNGM during the initial phases of Umoja. Select all that apply. A. Galileo B. CATS C. Sun D. Mercury Options A and B are correct answers. In addition to UNGM, Galileo and CATS legacy databases remain in place during the initial phases of Umoja. 19

20 Learning Checkpoint 2 Which of the following matches the equivalent category in UNSPSC classification? Select the correct option. A. Product or Service ID B. Product or Service Category C. Quality Inspection Flag D. Other physical or financial characteristics 20

21 Learning Checkpoint 2 Which of the following matches the equivalent category in UNSPSC classification? Select the correct option. A. Product or Service ID B. Product or Service Category C. Quality Inspection Flag D. Other physical or financial characteristics Option B is the correct answer. Product or Service category is one of the Master Data components. This number matches the equivalent category in UNSPSC classification. 21

22 Module 1 Summary The key points covered in this module are: In Umoja, all commercial vendors are registered in UNGM, except for one-time low-value vendors In addition to UNGM, Galileo and CATS legacy databases remain in place during the initial phases of Umoja The key components of Master Data include Product or Service ID, Product or Service Category, Quality Inspection Flag and Other physical or financial characteristics In the UN Contract Catalog, Buyers have the opportunity to create and add local contracts to the catalog 22

23 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts Course Summary Course Assessment Course Survey 23

24 Module 2 Objectives After completing this module, you will be able to: Explain the process of creating an RFx document Describe the use of the sourcing cockpit in Umoja SRM for the Solicitation process Explain how bids from vendors will be handled in Umoja SRM 24

25 Key Terminology Key Term Supplier Sourcing Cockpit RFx Collaboration Room Description Term used in Umoja SRM for all vendors Buyer workspace which allows Procurement to view and process approved Shopping Carts which were created without a source of supply, that is, without a contract assigned. These Shopping Carts may be processed as solicitations, contracts or PO s A generic term for a Solicitation Document. The x signifies the solicitation document could either be an ITB, RFQ, RFP, and so on A file repository within Umoja SRM where all bids received from vendors will be uploaded after scanning 25

26 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Procurement process: Buyer Processes purchase requisitions through solicitations Processes POs and contracts Buyer Supervisor Manages groups of Buyers Performs workload assessments Allocates procurement requirements to Buyers Approver Reviews and approves/rejects procurement documents (for example, RFx s, PO s and contracts) 26

27 Procurement Process The diagram below illustrates how procurement activities fit in an end-to-end process and whether these activities occur in Umoja SRM or ECC systems. SRM Call-off PO(s) ECC Creation of Shopping Cart (PR) Materials Management Approval Process SC generate (pre)commitment in FM Strategic Sourcing Bid(s) Contract(s) Approval Process Normal PO(s) Demands Generation(PR) Read only copies of PO(s) POs (replicated Goods Receipt(s) Invoice Receipts(s) Funds Management Pre-commitment Impacts Commitment Actuals Actuals 27

28 Sourcing Cockpit The Sourcing Cockpit is the Buyer workspace which allows Procurement to view and process approved Shopping Carts which were created without a source of supply. Buyers must check the Sourcing Cockpit regularly to view Shopping Carts that have been assigned to them by Buyer Supervisors. 28

29 Review Shopping Carts After reviewing the list of assigned Shopping Carts, a Buyer can perform either of the following tasks: Reject the Shopping Cart Commence the Solicitations Process The Buyer must review the requirements for each Shopping Cart. They may reject the Shopping Cart if: It does not comply with the Requirements of Financial Rule 5.12, as detailed in the Procurement Manual Chapter 9 The requirement is a duplicate to another Shopping Cart or Solicitation in progress The requirement is invalid for other reasons Requisitioners will see all rejected Shopping Carts in their Work Overview. 29

30 Review Shopping Carts After viewing the list of added Shopping Carts, a Buyer can perform either of the following tasks: Reject the Shopping Cart Commence the Solicitations Process Otherwise, the Buyer: Prepares the Source Selection Plan, outside of Umoja Makes a decision to publish or not to publish a Request for Expression of Interest (REOI) through UNGM and/or other platforms. This activity continues to be performed outside Umoja Once this is completed, the buyer may create the RFx document in Umoja SRM Note: If a systems contract is available for the product, the buyer may instead create a PO using that contract. 30

31 Buyer Role of Umoja in Solicitation Process Let s begin by reviewing how Umoja fits in as part of the Solicitation process. Buyers create an RFx from one or more Shopping Carts listed in the Sourcing Cockpit. Review SC requirements in Sourcing Cockpit Prepare Source Selection Plan Create RFx Document Tasks performed in Umoja Tasks performed outside Umoja Note: In the Sourcing Cockpit, Shopping Carts will be assigned to individual Buyers for review. 31

32 Approver Buyer Role of Umoja in Solicitation Process RFx are assigned to Approvers on the basis of Delegations of Authority and Procurement Group. The created RFx is printed in PDF format and sent to vendors by fax, and other modes as per current practice. Review SC requirements in Sourcing Cockpit Prepare Source Selection Plan Create RFx Document Review and Approve RFx Document Tasks performed in Umoja Tasks performed outside Umoja 32

33 Vendor Approver Buyer Role of Umoja in Solicitation Process Vendors submit bids manually via mail, , fax and other modes as per current practice. Review SC requirements in Sourcing Cockpit Prepare Source Selection Plan Create RFx Document Print and Send Solicitation to Bidders Review and Approve RFx Document Submit Response Tasks performed in Umoja Tasks performed outside Umoja 33

34 Bid Administrator Vendor Approver Buyer Role of Umoja in Solicitation Process After bids are opened using the current process, Bid Administrators or Buyers must enter the bid financial information into Umoja SRM. Review SC requirements in Sourcing Cockpit Prepare Source Selection Plan Create RFx Document Print and Send Solicitation to Bidders Review and Approve RFx Document Submit Response Tasks performed in Umoja Tasks performed outside Umoja Enter bid responses into SRM* *For RFQ s, Buyers perform this step instead 34

35 Bid Administrator Vendor Approver Buyer Role of Umoja in Solicitation Process After the award process is completed and a Statement of Award has been issued by all authorized parties, the Buyer may create a contract or PO from the awarded bid. Review SC requirements in Sourcing Cockpit Prepare Source Selection Plan Create RFx Document Print and Send Solicitation to Bidders Evaluate and Recommend Award Award Bid in SRM (After official approval) Review and Approve RFx Document Submit Response Tasks performed in Umoja Tasks performed outside Umoja Enter bid responses into SRM* *For RFQ s, Buyers perform this step instead 35

36 Add Bidders Suppliers in UNGM will be registered according to Product Category, using the UNSPSC classification system. Since all Suppliers in UNGM are replicated in Umoja SRM, Buyers will be able to: Select the appropriate vendors in Umoja based on the Product Category they are registered under Search for vendors based on several other attributes through Umoja SRM Note: For bidders who have not fully registered with UNGM, basic registration is available. This is a preliminary registration process with a short turnaround time. 36

37 Release and Approve a Solicitation After the Buyer creates the RFx, they will release it for approval. Similar to Shopping Carts, Approvers are assigned based on workflow considerations and Delegations of Authority. Buyer Releases RFx Document Approver 1 Approver 2 (if necessary) Approver 3 (if necessary) Automated Workflow through notifications and SRM Work Overview Note: The highest levels of approval may still occur outside of Umoja. 37

38 Send the Solicitation When an RFx is approved, a.pdf version of the RFx will be available to print from Umoja SRM. It can then be forwarded to the appropriate bidders by , fax or mail outside of Umoja. Vendors will also submit bids to UN outside of Umoja. After the bid opening process has been completed, the Bid Administrator (RFP) or the Buyer (ITB, RFQ): 1. May scan the bids and upload them into the Collaboration Room, a unique shared workspace for each RFx 2. Enters the commercial bid details into Umoja SRM. Umoja SRM is already pre-populated with RFx data based on information the Buyer used to create the RFx 38

39 Solicitation Variant Exceptions The following variants of the Solicitation process are also in scope for Umoja: Letter of Assist (LoA) Umoja SRM will be used to enter LoA s from UNHQ. Memorandum of Understanding (MOU) Umoja SRM will be used to enter Non-military MOU s at individual Missions. Sole Source Procurement It is possible to select only one vendor when creating an RFx solicitation document by Financial Rule

40 Learning Checkpoint 1 Identify the purpose of the Sourcing Cockpit in Umoja SRM. Select the correct option. A. Used to create a file repository in Umoja SRM B. Used to approve a Shopping Cart C. Used to select Shopping Carts for potential Solicitations D. Used to select the appropriate vendors in Umoja 40

41 Learning Checkpoint 1 Identify the purpose of the Sourcing Cockpit in Umoja SRM. Select the correct option. A. Used to create a file repository in Umoja SRM B. Used to approve a Shopping Cart C. Used to select Shopping Carts for potential Solicitations D. Used to select the appropriate vendors in Umoja Option C is the correct answer. Buyers must check the Sourcing Cockpit regularly to view which Shopping Carts have been added in their queue by Buyer Supervisors. 41

42 Learning Checkpoint 2 It is the responsibility of the or to scan the bid, enter the bid details and upload them into a repository in Umoja SRM. Select all that apply. A. Bid Administrator B. Buyer C. Vendor D. Tender Opening Committee 42

43 Learning Checkpoint 2 It is the responsibility of the or to scan the bid, enter the bid details and upload them into a repository in Umoja SRM. Select all that apply. A. Bid Administrator B. Buyer C. Vendor D. Tender Opening Committee Options A and B are the correct answers. It is the responsibility of the Bid Administrator (for RFP) or the Buyer (for ITB, RFQ) to scan the bid, enter the bid details and upload them into a repository in Umoja SRM. 43

44 Module 2 Summary The key points covered in this module are: The Sourcing Cockpit is used by Buyers regularly to view Shopping Carts that have been assigned to them by Buyer Supervisors Suppliers are registered in UNGM according to Product Category, using the UNSPSC classification system The LOA, MOU and Sole Source Procurement are exceptions to formal methods of Solicitation that remain in scope for Umoja 44

45 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts Course Summary Course Assessment Course Survey 45

46 Module 3 Objectives After completing this module, you will be able to: Distinguish between System contracts and Local contracts Describe the ways in which contracts are created and monitored in Umoja SRM Determine when a contract should be re-negotiated and modified in Umoja SRM 46

47 Key Terminology Key Term Unfunded Shopping Cart Product Category Contract Description Initiates the Solicitations process when procuring across budget periods and replaces $1 Requisitions Contracts that are associated with a Product Category instead of an individual Product ID, as with most contracts. These include Blanket PO s 47

48 Contract Creation Scenarios The process for creating PO s and contracts in Umoja depends on whether the original Shopping Cart was created from an existing Systems Contract using the UN Contract Catalog. The main scenarios that will lead to a contract or PO being created in Umoja are: Requisitioner creates Shopping Cart with Source of Supply Pre-populated PO automatically generated Buyer reviews and orders PO Requisitioner creates Shopping Cart without Source of Supply Contract exists? Buyer assigns Source of Supply No contract exists? Buyer creates, publishes Solicitation Buyer creates contract or PO from winning Bid Requisitioning Activity Procurement Activity 48

49 PO s Generated from Systems Contracts PO s are automatically generated from Shopping Carts that have an assigned Source of Supply. The process for this is as follows: Create Shopping Cart from UN Contract Catalog Review and Approve Shopping Cart Validate PO Review and Approve PO Requisitioner Approver 1 Buyer Approver 2 1. Requisitioner selects and adds items to his/her Shopping Cart from the UN Contract Catalog, which stores all Systems Contracts (in Umoja SRM) 2. Approver reviews the Shopping Cart that includes an item from the Catalog and approves it. A PO is automatically generated with all vendor information pre-populated 3. Buyer ensures PO ordered according to contract terms and conditions and submits for approval 4. Approver reviews the PO and approves it 49

50 Creating Contracts For contracts that are awarded from a Solicitation, the Buyer selects the appropriate contract template in Umoja SRM to create the required contract. Here are some of the different contract templates available in Umoja. These templates affect the look and format of the output.pdf contract document. The fields and screens used in Umoja SRM to create contracts remain the same. When a contract is created, the Buyer has the option to add it to the UN Contract Catalog so that Requisitioners can add items from that contract directly to their Shopping Carts. 50

51 Approve and Distribute Contracts Contracts are approved in a similar way as Shopping Carts and RFx documents in Umoja SRM. Here are the key points for approving and distributing contracts: Approvals and reviews from other parties, such as the Committees on contracts, continue to be performed outside of Umoja. There are fields in Umoja SRM where the Buyer can mark that these approvals have been confirmed POs require a Funds Commitment. This is a term used in Funds Management which equates to the obligation of funds to a vendor Contracts created in Umoja SRM are printed in the PDF format and forwarded manually to the Contractor for signature 51

52 Monitor Contracts When a contract is created, the Buyer sets up specific alerts in Umoja to send automated notifications. Specific alerts in Umoja send automated s when certain pre-set tolerances are exceeded. For example, expiration dates, 75% NTE Usage, Insurance and Security instruments expiration When an alert is triggered, the Buyer is notified. The Buyer must then review the contract to decide the course of action to take 52

53 Contracts Administration Tracking System The Contracts Administration Tracking System (CATS) continues to be maintained in conjunction with Umoja. NTE limits and other criteria about each Contract are replicated in both systems until all Secretariat entities have been brought onto Umoja. This will allow entities that have implemented Umoja to view how much of the NTE limit a contract has used up, even if other, non-umoja, entities have been using that contract. NTE limits and other criteria about each contract are replicated in both systems 53

54 Re-negotiate Contracts The re-negotiation process is not changing with the introduction of Umoja. For any modifications to existing contracts, Buyers may find the contract in SRM and make the required edits. Amended contracts will need to be approved again. If they are approved, the original copy of the contract will be kept in Umoja SRM for reference purposes. Note: If a new contract is required, then the steps in the Contract Creation process will be followed. 54

55 Learning Checkpoint 1 Which of the following activity is performed outside Umoja? Select all that apply. A. Contract approval from Office of the Central Support Services B. Pre-encumbrance of funds C. Contract performance review D. Re-negotiation process 55

56 Learning Checkpoint 1 Which of the following activity is performed outside Umoja? Select all that apply. A. Contract approval from Office of the Central Support Services B. Pre-encumbrance of funds C. Contract performance review D. Re-negotiation process Options A and D are the correct answers. Contract approval from other parties, such as the Office of Legal Affairs and Controller, continue to be performed outside of Umoja. Re-negotiations are also outside of the system. 56

57 Learning Checkpoint 2 Which of the following role signs a copy of the contract and uploads it into Umoja SRM? Select the correct option. A. Contractor B. Requisitioner C. Buyer D. Vendor 57

58 Learning Checkpoint 2 Which of the following role signs a copy of the contract and uploads it into Umoja SRM? Select the correct option. A. Contractor B. Requisitioner C. Buyer D. Vendor Option C is the correct answer. The Buyer signs the copy of the contract and uploads it into Umoja SRM. 58

59 Module 3 Summary The key points covered in this module are: Contracts for the most part are created from awarded solicitations in an appropriate contract template in Umoja SRM The re-negotiation process is not changing with the introduction of Umoja For any modifications to existing contracts, Buyers find the contract in SRM and make the required edits The CATS system continues to be maintained in conjunction with Umoja until all Secretariat entities have been brought onto Umoja 59

60 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts Course Summary Course Assessment Course Survey 60

61 Course Summary The key points covered in this course are: In Umoja, all commercial vendors are registered in UNGM In addition to UNGM, Galileo and CATS legacy databases remain in place during the initial phases of Umoja Buyers must check the sourcing cockpit regularly to view Shopping Carts that have been assigned to them by Buyer Supervisors Contracts for the most part are created from awarded solicitations in an appropriate contract template in Umoja SRM The re-negotiation process is not changing with the introduction of Umoja For any modifications to existing contracts, Buyers find the contract in SRM and make the required edits 61

62 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts Course Summary Course Assessment Course Survey 62

63 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 63

64 Agenda Course Introduction Module 1: Supply Chain Master Data Module 2: Solicitations Module 3: Contracts Course Summary Course Assessment Course Survey 64

65 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 65

66 Congratulations! You have successfully completed the Umoja Procurement Overview course. 66