Introduction for new suppliers to UNICEF procurement mechanisms

Transcription

1 UNICEF/PFPG /Lynch Introduction for new suppliers to UNICEF procurement mechanisms Vaccine Industry Consultation 2018

2 Outline Supplier Registration Supplier Performance Monitoring Requirements for considerations for awards Guiding procurement principles and procurement compliance oversight Vaccine procurement process overview Ethics: UNICEF staff and manufacturers Transparency: awards and prices

3 Supplier Registration UNICEF is interested in diversifying its supplier base and in finding new suppliers that can provide quality goods at competitive prices. As a principal, UNICEF Supply Division (SD) only procures vaccines that are WHO pre-qualified. All applications to become a supplier with UNICEF must be made via the United Nations Global Marketplace (UNGM) website Before the issuance of contractual instruments, Supplier Evaluation Unit in the Quality Assurance Centre (QAC) evaluates suppliers against a range of criteria. Financial, ethical and statutory incorporation/registration status are assessed while evaluating suppliers in order to identify and potentially mitigate risks to UNICEF of contracting with unstable suppliers.

4 Supplier evaluation includes Legal registration Legal registration - Certification of Incorporation, Legal structure - parent companies, subsidiaries Ethical principles No unethical, unprofessional or fraudulent activities Not suspended, debarred, or otherwise identified as ineligible by any UN Organisation or the World Bank Group for reasons related to unethical behaviour Completed UNGM / signed Supplier Profile Form (SPF) with submitted documentation Financial viability Financially stable and able to deliver on time Financial statements with comparative figures for the previous year. Auditor Report, Income statement, Balance sheet, Cash flow, Notes

5 Supplier Performance Monitoring UNICEF SD contracts with a wide range of suppliers, who play an integral role in SD s ability, to constantly provide products of the appropriate standards to our customers. In order to ensure a consistent level of excellence is maintained by our suppliers, periodic evaluation of their performance is necessary. UNICEF requires that its vendors support UNICEF core values by conducting business with integrity, treating others with respect, striving for performance excellence and accepting accountability for their conduct. All vendors are therefore expected to adhere to the provisions of UNICEF s Policy Prohibiting and Combatting Fraud and Corruption see CF/EXD/

6 Requirements for consideration for UNICEF Award Meet all mandatory requirements in Request for Proposal, e.g. registration to UNGM; submission of most recent Audited Financial Statement; technical requirements and submit to correct address in timely manner Prequalification of vaccine: a service provided by WHO to UNICEF and other UN agencies purchasing vaccines, ensuring the acceptability, in principle, of vaccines from different sources based on quality, safety and efficacy

7 Requirements for consideration for UNICEF Award Question: Should a manufacturer submit a proposal if its vaccine is not yet prequalified? Yes! if a vaccine is close to prequalification or expected to be prequalified during the tender period, a manufacturer should submit a proposal including timelines for expected prequalification. UNICEF may decide to leave quantities unawarded or make an award conditional to prequalification

8 Guiding Procurement Principles Promotion of objectives of UNICEF: to advance children s rights to survival, protection, health, development and participation (fulfilling the mandate, goals and objectives) Fairness, integrity and transparency through competition (clear & appropriate regulations/rules applied to all suppliers, fair process, equal treatment of suppliers, transparent system) Economy and effectiveness (meet requirement in terms of quantity, quality, timeliness at the right place. Economy=minimize cost, Effectiveness=meet end-user interest) Best value for money (Consider the optimum combination of factors in meeting the end user needs; BVM does not mean lowest cost but best Return On Investment)

9 Procurement Compliance Oversight A Contracts Review Committee (CRC) is an advisory body to Authorized UNICEF Officials to provide a competent, independent and unbiased review of the process leading to proposed contract award recommendations final approval by Director. Principles of the review a clear and transparent process followed to identify bidders (i.e. eligible bidders are given equal access and a fair opportunity to compete for the contracts) the solicitation process was compliant with UNICEF procurement policies & procedures and relevant Financial Rules and Regulations offers were assessed based on clear and transparent commercial, technical and quality criteria as well as value for money

10 Types of Competition Open Open competition / Maximized access Public advertising of a tender All qualified can participate Limited Predetermined qualifications for participation in the tender Short listing Direct procurement Waiver of competition / Single source / Sole source The specific approach is determined by value, product requirement, procurement scope, situation, market, risk etc. as considered in a product specific procurement strategy Bidding opportunities:

11 Procurement process overview Vaccine Security (forecasting, funding and contracting) UNICEF Issues Formal Tender and Evaluates Offers Ensure an uninterrupted, sustainable supply of affordable, quality vaccine Invoice payment 1-4 years Establishment of Long Term Arrangements for supply of vaccines for multiple years PO PO PO Placement of orders Shipment by freight forwarder from Manufacturer Vaccine Arrival Report Country inspection

12 The tender process:develop, Issue, Receipt 1. Development of procurement strategy and objectives 2. Demand / Forecast development 3. Development of draft tender document 4. Pre-tender meeting with industry 5. Feedback from industry and finalization of tender document 6. Issuance of tender 7. Clarifications 8. Receipt of proposals 9. Technical review (by WHO) 10.Quantitative and Qualitative review

13 The tender process: Evaluation, Award 11.Clarification meetings/calls with suppliers 12.Evaluation of proposals per Evaluation Criteria & Procurement Objectives 13.Consultation with PRG* and Partners 14.Recommendation of awards based on evaluation 15.UNICEF internal award review and approval process 16.When applicable, Partner (e.g. Gavi) approval, and provision, of any financial requirements 17.Notification of awards to proposers 18.Establishment of LTAs 19.Public posting of awards and prices ( 20.Debriefing of proposers *PRG: Procurement Reference Group established for some Gavi supported vaccines

14 Ensuring equal treatment, no bias and ethics Contracting staff are governed by UNICEF Financial Rules and Regulation and procedures related to ethical behaviour During the time when a tender is open (from tender issuance to closing) - communication with suppliers is more formal and written, in accordance with tender instructions Bids/proposals are received and validated by an independent Bid Section (QA) and then transferred to Contracting staff UNICEF does not accept manufacturers to fund trips, hotels, etc. or gifts Business should be conducted during normal working hours Meetings should be with minimum two UNICEF staff members Suppliers not invited to UNICEF staff offices

15 Ethics required from Suppliers UNICEF requires that all suppliers associated with any Procurement Arrangement(s), observe the highest standard of ethics during procurement and execution of the work to immediately notify UNICEF in case of any allegations of fraud The supplier should not be suspended, debarred, or otherwise identified as ineligible by any organisation within the World Bank Group or any other International or UN Organisation to notify UNICEF in case Supplier represents and warrants that neither it or any of its affiliates are engaged in: Child labour Sale or manufacture of antipersonnel mines or components

16 The Expected Tender Outcome UNICEF establishes framework Supply Arrangements called Long Term Arrangements (LTA) - good faith based on accurate forecasting, but treated as contracts Purpose: To establish forecasts on quantities to be produced and quantities to be bought over the LTA duration Defines Technical, Quality and Commercial requirements for the Purchase Orders that are then placed against the LTA LTAs can be for single or multi year depending on the vaccine and objectives of tender strategy Tenders issued with the aim to allow for appropriate planning before first supply aiming at having awards latest 6 months before

17 Transparency on Awards After awards, all Proposers will receive a letter including the following information: Total vaccine quantity awarded per year per presentation at an aggregate level Number of suppliers awarded per year per vaccine presentation Yearly awarded weighted average price (WAP) per vaccine presentation Total contract value awarded to a supplier, with listing of included vaccines UNICEF has standard procedures for publication of awards on website: Tender, duration, total value, material(s), supplier name

18 Transparency on Vaccine Prices Supporting countries to make informed decisions As a public procurement agency, recognising the need for increased transparency Historically, UNICEF has posted weighted average pricing for current year and projected quantities Specific country pricing provided in response to the forecast at the onset of the year Since January 2011 posted all historic pricing contracted under LTA from 2001, and now also future prices through to LTA expiry Next step moving to publication of MIC prices by country by product presentation and supplier

19 Information available on the UNICEF website Presentation materials from previous pretender meetings are available on this website Other important information available on this website is as follows. - UNICEF engagement in MIC country procurement - Historical annual procurement values and volumes: - Current Weighted Average Prices: - Vaccine Price Data by suppliers:

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21 UN Supplier Code of Conduct UN Supplier Code of Conduct Children s Rights and Business Principles No Child Labor, No Landmines UNICEF s Policy on Conduct Promoting the Protection and Safeguarding of Children UN Supplier Code of Conduct Zero-tolerance for all forms of fraud and corruption Information disclosure policy Zero tolerance policy on gifts and hospitality from suppliers All UN and UNICEF registered suppliers acknowledge the UN Code of Conduct. (rev. Sept 2013). Based on the UN charter, the principles of the Global Compact and ILO standards; The UN expects that these principles apply to suppliers and their employees, parent, subsidiary or affiliate entities, and subcontractors; that they are seen as minimum standards that suppliers strive to meet and exceed them. The code addresses: Labour conditions: Freedom of Association, no force or compulsory, no child labour, discrimination, standards for working conditions. Human Rights: No Harassment, Harsh or Inhumane Treatment, no manufacture or sale of mines. Environment: Compliance with regulations, manage chemical and hazardous materials; waste and air emissions, Minimize Waste, Maximize Recycling. Ethical conduct: No corruption, conflict of interest declaration, no gift and hospitality, post employment restrictions.

22 UNICEF s GTCs: Ethical standards overview UNICEF s General Terms and Conditions (GTC) of Contract Article 7 (Ethical Standards) Anti-fraud Anti-corruption Sexual Exploitation and Abuse Post-employment restrictions Conflict of Interest Disclosure Sanctions and suspension UNICEF may terminate a contract with immediate effect and no liability in case of breach of Article 7 of the GTC

23 GTCs para 7.2 (b) post employment restrictions 7.2 (b)the Supplier represents and warrants that the following requirements with regard to former UNICEF officials have been complied with and will be complied with: (i) During the one (1) year period after an official has separated from UNICEF, the Supplier may not make a direct or indirect offer of employment to that former UNICEF official if that former UNICEF official was, during the three years prior to separating from UNICEF, involved in any aspect of a UNICEF procurement process in which the Supplier has participated. (ii) During the two (2) year period after an official has separated from UNICEF, that former official may not, directly or indirectly on behalf of the Supplier, communicate with UNICEF, or present to UNICEF, about any matters that were within such former official's responsibilities while at UNICEF. 23

24 GTCs para 7.2 (c) duty to declare any conflict of interest 7.2 (c) The Supplier represents that, in respect of all aspects of the Contract (including the award of the Contract by UNICEF to the Supplier and the selection and awarding of sub-contracts by the Supplier), it has disclosed to UNICEF any situation that may constitute an actual or potential conflict of interest or could reasonably be perceived as a conflict of interest. 24

25 GTCs para 7.7 prevention of sexual exploitation or abuse 7.7 The Supplier represents and warrants that it has taken and will take all appropriate measures to prevent sexual exploitation or abuse of anyone by its Personnel including its employees or any persons engaged by the Supplier to perform any services under the Contract. For these purposes, sexual activity with any person less than eighteen years of age, regardless of any laws relating to consent, will constitute the sexual exploitation and abuse of such person. In addition, the Supplier represents and warrants that it has taken and will take all appropriate measures to prohibit its Personnel including its employees or other persons engaged by the Supplier, from exchanging any money, goods, services, or other things of value, for sexual favours or activities or from engaging in any sexual activities that are exploitive or degrading to any person. This provision constitutes an essential term of the Contract and any breach of this representation and warranty will entitle UNICEF to terminate the Contract immediately upon notice to the Supplier, without any liability for termination charges or any other liability of any kind. 25

26 UNICEF s Policy on Conduct Promoting the Protection and Safeguarding of Children UNICEF s Policy on Conduct Promoting the Protection and Safeguarding of Children re-affirms UNICEF s long-standing commitment to promote the protection and safeguarding of all children, and to promote the universal understanding that the best interests of the child must be a paramount consideration in all actions affecting children. The policy is available at UNICEF s procurement policies webpage: 26

27 Good UNICEF practices when working with suppliers Avoid Conflicts of Interest Zero-Tolerance Policy towards unethical behaviour Do not accept gifts and gratuities Conduct business during working hours Bring a colleague to all meetings Use a meeting room, not your office Make an agenda and minutes for all meetings Ensure sufficient distance especially if relationship of many years Intention: Protect the Supplier and UNICEF staff!

28 UNICEF s procurement policies webpage Webpage address: Makes publicly available UNICEF s General Terms and Conditions, Long Term Arrangement standard Contractual Provisions and UNICEF s PO/service contract standard Contractual Provisions Provides information/links to all the key UNICEF (and UN) policy documents including the UN Supplier Code of Conduct, the Global Compact, UNICEF s Policy Prohibiting and Combatting Fraud and Corruption, UNICEF s Policy on Conduct Promoting the Protection and Safeguarding of Children, UNICEF s Information Disclosure Policy and UNICEF Procedure on Sustainable Procurement. Supplier feedback/complaints: Your views are important to us and your feedback and complaints are taken seriously in Supply Division. If you have any complaint, please contact Quality Assurance Centre: sd.complaints@unicef.org 28