Seba Ismaiel. UNICEF Procurement Process and Control Oversights + Outline of Tender Document

Transcription

1 Safe Injection Equipment Industry Consultation 21 st 22 nd April 2015 UNICEF Procurement Process and Control Oversights + Outline of Tender Document Seba Ismaiel

2 Table of Content UNICEF Safe Injection equipment (SIE) procurement Objectives Tendering Process Tender Document and Proposals Review Establishment and Management of LTAs

3 UNICEF SIE Procurement Objectives

4 UNICEF Guiding Procurement Principles Promotion of objectives of UNICEF (fulfilling the mandate, goals and objectives) Fairness, integrity and transparency through competition (clear & appropriate regulations/rules applied to all suppliers, fair process, 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 ROI)

5 UNICEF Procurement Process Procurement Planning Requirement Definition Sourcing/Invitee list (REOI / UNICEF Vendor Roster / UNGM...) Preparation and Issuance of Solicitation Documents Request for Quotation (RFQ) USD 1,000 - USD 30,000 Invitation to Bid (ITB) USD 30,000 and over Request for Proposal (RFP) no threshold Receipt and Opening of Submissions Evaluation (Technical/Quality and Commercial) Adjudication & Award Recommendation Contract Finalization and Issuance Contract Management

6 Bidding Options Available within UNICEF 'Shopping' >$2,500 where competitive tendering waived. Request for Quotation (RFQ) A solicitation document used for requirements that can be clearly specified for a total value of over US$ 2,500 and up to US$ 30,000. Invitation to Bid (ITB) A solicitation document for procurement over US$ 30,000. The ITB describes requirements that can be clearly specified, allowing suppliers to submit bids on the same basis. Request for Proposal (RFP) A solicitation document to satisfy a requirement that cannot be described in a complete or definitive manner. An RFP seeks the proposal that offers the best value in accordance with the stated evaluation criteria and method. A public bid opening is not required. Negotiations are allowed with the suppliers whose proposals have been evaluated and determined as meeting the mandatory and minimum requirements.

7 UNICEF SIE Procurement Framework UNICEF Procurement Strategy for Safe Injection Equipment Compliance to UNICEF Financial Rules and Regulations Compliance to Public Procurement Principles Integrity Competition Client Service Equal Treatment Organizational Objectives

8 UNICEF Procurement Strategy Objectives for SIE To ensure an uninterrupted sustainable supply of affordable products that are in compliance with the required quality and technical requirements To strengthen injection safety by reducing the risk of re-use. Maintain a healthy market with multiple suppliers in the markets Engage Industry to address programmatic and supply challenges. Reduce the overall cost to programs (Landed cost). Move towards a more sustainable procurement approach. Support Bundling of vaccines and injection devices. Improve the efficiency of the tendering and procurement processes.

9 Tendering Process

10 The Expected Tender Outcome Establishment of multi year supply arrangements for SIE UNICEF establishes framework arrangements called Long Term Arrangements (LTA s) Purpose: To establish forecasts of quantities to be produced and quantities to be bought over the LTA duration Defines Technical, Quality and Commercial requirements Based of forecasted requirements

11 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

12 The Tender Process Evaluation, Award 9. Technical and quality review 10. Quantitative and Qualitative review 12. Evaluation of proposals per Evaluation Criteria & Procurement Objectives 13. Recommendation of awards based on evaluation 14. UNICEF internal award approval process 15. Notification of awards to proposers 16. Public posting of awards ( 17. Establishment of Arrangements. 18. Debriefing

13 Consultations with Industry and Partners Industry Consultation prior to large tenders Hosted at Supply Division SIE industry invited to attend Reviews & Market updates Tender Strategy and Objectives Quality and technical requirements Forecast demand requirements Tender Documentation Q & A Session All presentations posted on the UNICEF website

14 Tender Methodology Request for Proposal Request for Proposal (RFP) vs. Invitation to Bid (ITB) The RFP is found most appropriate for tendering for products that are complex and where the evaluation will be considering various factors The RFP provides manufacturers with the opportunity to develop a proposal incorporating all factors that are needed for their equipment to be produced and sold The RFP allows the flexibility for the proposers to submit innovative proposals to meet UNICEF demands. For SIE tendering, UNICEF is opting for: RFP

15 Proposals Opportunity to Provide Innovative Proposal Features to Help us Achieve Exceptional Results. UNICEF is inviting proposers to offer alternative terms that bring real value to the proposer and thereby enable a more attractive offer. This could be elements such as currency, bundling, pricing structure. Scenarios on when alternative would be considered by UNICEF: Exceptional and considered in cases were the benefit was substantial and could justify the additional risk/commitment. UNICEF requirements: attractive offer, enabling to meet the tender objectives financial and non-financial risk analysis to be conducted available mitigation measures

16 Invitee List WHO PQ manufacturers. Suppliers who expressed interest. Pervious and current LTA holders. Industry representatives from Safe Injection Global network (SIGN) For SIE tendering, UNICEF is in general opting for: Single-year or single delivery tenders: Manufacturers of WHO PQ Multi-year tenders: Wider pool

17 Product Range SIE products in one tender vs. Separate tender for each product Most of SIE have linkages- in forecast if not all. SIE tenders are large and terms and conditions- lengthy documents Lengthy tender process when establishing 2-year arrangements Specific tender objectives and processes for SIE For SIE new tender, UNICEF is opting for all SIE in one tender: AD syringes RUP and RUP with SIP syringes Disposable syringes and needles. Safety boxes

18 Evaluation Criteria Options Various options to evaluation criteria: Option a) Lowest price is awarded full offered quantity, then second lowest, etc, until required quantity is fulfilled. Option b) Pre-defined weightings of each factor (past on-time delivery performance, price, delivery schedule, future production plans, shelf-life, ability to maintain buffer stock, timeline for emergency response (packaging), shipping performance, etc.) Option c) Quantitative and Qualitative review (of above factors) against Pre-defined procurement objectives and principles. For SIE tendering, UNICEF is in general opting for: Single-year or single-delivery tenders: option (a) Multi-year tenders: option (c)

19 Who is Eligible for an Award? Meeting all mandatory requirements, including: Commercial requirements Technical and quality assurance compliance UN Global Marketplace (UNGM) registration Financial requirements / Approval by UNICEF supplier evaluation unit

20 Public Notification of Awards UNICEF has standard procedures for publication of awards on website: Tender, duration, total value, material(s), supplier name This is UNICEF standard procedure (not just immunization) After awards, all Proposers will receive a letters including one of the following information: Total SIE quantity awarded per year per supplier Number of suppliers awarded per year per product Yearly awarded weighted average price (WAP) per product Reasons for none award Annual awarded prices will be posted on UNICEF web-site following link

21 Post-Award Debriefings What can we know about our competitor s offer? All Proposers are advised of the outcome of their proposal Proposers receiving an award may request a debriefing Proposers not receiving an award may request a debriefing During a debriefing session, the strengths and weakness of the manufacturer s proposal may be discussed. Details concerning the evaluation, results of a competitor s proposal will not be discussed, other than what is publicly available.

22 Examples of Controls and Oversight Internal Oversight UNICEF Financial Rules and Regulations UNICEF Procurement Procedures Ethical Code Contracts Review Committee (independent from contracting staff) Procurement Training and Certification of contracting staff External Oversight UN External Audit UNICEF Internal Audit

23 Ethical Codes 1. Corrupt and Fraudulent Practices UNICEF requires that all Proposers associated with this Request for proposal observe the highest standard of ethics during procurement and execution of the work. In pursuance of this policy UNICEF: (a) Defines for the purpose of this provision the terms set forth as follows: (i) corrupt practice means the offering, giving, receiving or soliciting of any thing of value to influence the action of a public official in the procurement process or in the execution of a contract, and (ii) fraudulent practice means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the client, and includes collusive practice among Proposers (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels and to deprive the client of the benefits of free and open competition; (b) Will reject a proposal for award if it determines that the selected supplier / contractor have engaged in any corrupt or fraudulent practices in competing for the contract in question; (c) Will declare a bidder ineligible, either indefinitely or for a stated period of time, to be awarded a UNICEF-financed contract if at any time it determines that it has engaged in any corrupt or fraudulent practices in competing for, or in executing a UNICEF-financed contract.

24 Ethical Codes continued- 2. Unethical Behavior UNICEF strictly enforces a policy of zero tolerance concerning unethical, unprofessional or fraudulent acts of UNICEF Proposers. Accordingly, any registered bidder that is found to have undertaken unethical, unprofessional or fraudulent activities will be suspended or forbidden from continuing business relations with UNICEF. 3. Officials Not to Benefit The bidder warrants that no official of UNICEF or the United Nations has received or will be offered by the bidder any direct or indirect benefit arising from this Invitation to Bid or the award thereof. The bidder agrees that breach of this provision is a breach of an essential term of the Invitation to Bid. 4. Guidelines on Gifts and Hospitality Proposers shall not offer gifts or hospitality to UNICEF staff members. Recreational trips to sporting or cultural events, theme parks or offers of holidays, transportation, or invitations to extravagant lunches or dinners are also prohibited.

25 Liquidated damages For late delivery of items or items which do not meet UNICEFs specifications and therefore rejected by UNICEF UNICEF shall be entitled to claim liquidated damages from the successful Bidder. Deduction of -0.5% of the value of the items pursuant to the Purchase Order per additional day of delay, up to a maximum of 10% of the value of the Purchase Order.

26 Tender Document and Proposals Review

27 Overview of Tender Document 5 Main Sections 1. Purpose The objectives of the tender 2. Background Procurement Principles Forecasting Methodologies Background Information relevant to understand the requirement Information highlighting changes or specific points 3. Instruction to proposers How to make and submit a proposal Information on how UNICEF will handle proposals, including definition of mandatory requirements Information on how UNICEF will debrief and share result of tender outcome.

28 Overview of Tender Document 4. Terms and Conditions (list not exclusive) Mandatory technical and quality requirements Mandatory financial and commercial requirements, such as; UNGM registration Financial Requirements / Approval by UNICEF Supplier Evaluation Unit Shipping and Packaging Instructions, Primary Containers, weight and volumes, Commercial Requirements; currency, Incoterm Account Management, past performance, affordable prices, monthly Allocations, Emergency response preparedness Special terms and conditions; ethical clauses General Terms and Conditions 5. Evaluation of proposals and basis for awards Methodology, process and criteria

29 Overview of Tender Document During previous tenders the Answering Sheets have been structured as follows: ITB bid form Qualitative bid sheets for guidance Quantitative Proposal sheets one for each product. Tender Quantities Monthly produced/ offered quantities. Requested information: Quantities, price, currency, commercial factors, lead time, packaging/weight/volume, UNICEF is considering to revise the structure of the Answering Sheets in order to separate Commercial and technical aspects of proposals and reflect the new tendering module of the RFP.

30 Proposals from Proposers Proposers are invited to submit a comprehensive proposal Responsive to forecasted demand quantities for each product The type of product being proposed, and specifications Unit price per product Annual and monthly production for each product Alternative SIE products Comply with all MANDATORY REQUIREMENTS Comply with the INSTRUCTIONS TO PROPOSERS and information requested Provide explanations to any request for exceptions or clarification on the RFP PROPOSAL FORM Proposal/s will be reviewed technically and commercially. UNICEF will send clarification requests to proposers if needed.

31 Proposal Evaluation Process Review of Mandatory Requirements Technical requirements Financial Review by UNICEF Supplier Evaluation Unit (SEU) Compliance to UNICEF General Terms and Conditions Quantitative Review of Proposal Products offered, quantities, price, delivery schedule, leadtimes, ability to maintain buffer stock, volume and packaging requirements Qualitative Review of Proposal Proven experience and past performance Ability to perform account management / good communication On-time delivery performance

32 Financial Evaluation SEU SUPPLIER REGISTRATION AND EVALUATION Supplier must pass the financial evaluation conducted by UNICEF Supplier Evaluation Unit. If a supplier has not undergone this review, an application must be submitted through United Nations Global Marketplace (UNGM) website at under Instructions are provided on the website. Proposers are requested to submit the UNGM application number, along with the documentation listed below, to UNICEF Supply Division, attention Supplier Evaluation Unit, A copy of company's legal registration A complete copy of company's latest audited financial statements, with comparative figures for the previous year. This includes, but is not limited to, the following: The report from the auditor (signed by the auditors) The balance sheet, The income statements, and notes thereto

33 Mandatory Requirement Identification A. Review of Mandatory Requirements: Identify the minimum requirements to be considered for further review. Mandatory requirements will be indicated throughout the RFP by the words mandatory, shall, must or will in regard to obligations on the part of the proposer. Bids that do not meet the mandatory requirements may not be eligible for award.

34 Mandatory Requirements Compliance with Instructions to Proposers UNICEF General Terms and Conditions Technical and Quality assurance compliance Currency of offer (EURO or USD) Compliance with Financial Requirement Compliance with the new packing and shipping requirements Fixed and firm pricing unless alternative offer

35 Review of Quantitative and Qualitative Requirements Price: DAP, FCA and landed cost price Payment Terms Responsiveness to the RFP document Delivery times Offered production quantity Acceptance to keep a rolling buffer stock (min 10% of awarded quantities) Account management abilities Past performance on account management and on-time delivery. On-time delivery is measured by a) ability to meet agreed upon delivery dates; and b) ability to meet stated monthly allocations Other information required and included in the evaluation: Proposers relationship with the manufacturer of the offered products Validity of Bid minimum 120 days Country of origin Gross weight and volume

36 Establishment and Management of LTAs

37 What is a Long Term Arrangement (LTA)? A LTA is an arrangement entered with a supplier to secure the supply of a product or service over a period of time; Framework of mutually agreed terms and conditions (product, price, etc.) As a result of a competitive bidding process For procurement of goods, services or works for which the buyer has a repeated need Entered in good faith for a period of time Non-exclusive Not obligatory to order any minimum quantity Long term commercial partnership with selected supplier(s)

38 When to establish LTAs? High frequency of repeat orders Strategic and/or emergency items Products with precise specifications In-house technical capacity available High potential for business leverage To secure supply for a scarce market area Consider product life cycle maturity of the market Consider stability/volatility of prices

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41 Supply Management Quarterly supplier performance evaluation for all LTA holder. Evaluation conduct in a face to face meeting and/or teleconferences. Evaluation process consists of four indicators: - PO Acknowledgement Response Time - Notification of Goods Readiness Response Time - Declared On-Time delivery - Account Management

42 Thank you!