UNFPA s Procurement Services Branch (PSB)

UNFPA s Procurement Services Branch (PSB) UNFPA Supplier Workshop, September 2013

Agenda 1. PSB in Copenhagen what we do & who we are 2. What UNFPA procures 2012 statistics 3. Procurement Principles & Ethics

UNFPA Mission and Related Work UNFPA delivers a world where every pregnancy is wanted, every birth is safe, every young person's potential is fulfilled. UNFPA s work is driven by: Millennium Development Goals 4 to 6 (Reduce child mortality, Reduce maternal mortality & Achieve universal access to reproductive health, Combat HIV aid) International Conference on Population and Development

From Mission to Procurement UNFPA Mandate and Mission Overall strategic plan of UNFPA for the next 4 years Family Planning Strategy Procurement Strategy and Implementation Plan Procurement actions Programme External Clients 1/3 rd of UNFPA spend on procurement!

Organizational Structure in PSB Teams: Operational Procurement Regions Downstream Supply Chain Procurement/Contracting Strategic Upstream Supply Chain Outreach Inventory/Emergency Transverse Support Quality Capacity Building Finance and IT

PSB s main activities UNFPA: Lead UN Agency for the procurement of Reproductive Health (RH) Commodities. PSB activities include: a) Regular transactional procurement for UNFPA COs and external clients (via AccessRH) b) Emergency procurement and management of inventory c) Strategic Procurement Cluster establishing LTAs d) Quality Assurance incl. pre-qualification of factories e) Procurement capacity buildings to governments, external and internal trainings, advise and guidance f) Supply chain coordination for better procurement & programme integration g) Participate in harmonized UN procurement initiatives

PSB s main activities a) Regular transactional procurement for UNFPA COs and external clients (via AccessRH) b) Emergency procurement and management of inventory c) Strategic Procurement Cluster establishing LTAs d) Quality Assurance incl. pre-qualification of factories e) Procurement capacity buildings to governments, external and internal trainings, advise and guidance f) Supply chain coordination for better procurement & programme integration g) Participate in harmonized UN procurement initiatives

Procurement Spend Increases Steady growth for PSB procurement, in 2013 we will exceed USD 200M.

Emergency RH Kits UNFPA holds stocks of Emergency Reproductive Health (ERH) kits for emergency situations. 13 different types of ERH kits (WHO Approved). In emergency situations the order will be dispatched and delivered to the destination within 1-2 weeks (via AIR shipment) depending on the availability of flights. PSB works closely with Humanitarian Resources Branch

Strategic Procurement Cluster a) Put in place global LTAs for core products (catalogue available online) and contracts for Headquarters needs b) Manage supplier relationship: product category management, supplier development programmes, supplier perception management, etc. c) Collect procurement plans and work with other UNFPA branches and external stakeholders on global forecasting

Quality Assurance a) Manage the WHO/UNFPA Prequalification Programme for Male & Female Condoms and Copper IUDs. b) Coordinate the WHO Expert Review Panel (ERP) process for RH Medicines. c) Manage the technical evaluations of medical devices (medical equipment, consumables, ERH kits). d) Capacity strengthening workshops with national quality control laboratories and national regulatory authorities on quality control of RH commodities. e) Awareness campaign to end users on newly WHO prequalified products

Capacity Building a) Provide procurement trainings to MOHs and to UNFPA COs b) elearning website and navigation in 4 languages: English, French, Russian & Spanish. Module itself is in 7 languages: English, French, Mongolian, Portuguese, Russian & Spanish with Arabic in the works. c) UN Coordination on Capacity Development (advanced training programme option for middle income countries, available early 2014). d) Institutional partnerships. e) Support through External Partners, e.g. The People that Deliver.

Supply Chain Coordination a) Supply chain coordination for better procurement & programme integration : upstream & downstream. Involve multiple stakeholders (internal & external) b) Upstream for market shaping (e.g. global forecasting) c) Downstream to ensure seamless distribution (e.g. Knowledge management (PtD), Look at innovative IT tools for commodity tracking, Pilot an innovation laboratory in Kenya, etc.)

Harmonized UN Procurement a) Agencies involved: About 30 UN agencies, https://www.ungm.org/info/about.aspx, including UNFPA, UNDP, UNPD, UNICEF, UNHCR, WHO, PAHO, WFP. b) Collaboration methods: Piggybacking Joint sourcing c) Joint Tenders: Freight forwarding Cargo & warehouse insurance Medical equipment, pharmaceuticals d) Work place: http://www.ungm.org e) Harmonized procurement processes: Guidelines for Common UN Procurement at the Country Level Procurement Practitioner s Handbook

Agenda 1. PSB in Copenhagen what we do & who we are 2. What UNFPA procures 2012 statistics 3. Procurement Principles & Ethics

UNFPA Global Procurement Statistics 2012 Global UNFPA Procurement Total in US$ Global supply as % of total Contraceptives 128 million 38% Professional consultancy services 54 million 16% Various services 47.5 million 14% Medical devices & supplies 26 million 8% Premises, rent, construction, alteration 19.5 million 6% Transportation equipment 14 million 4% IT & Communication equipment 13 million 4% Freight / transportation services 12.5 million 4% Printing & publication 11.5 million 3% Office equipment, furniture & supplies 8 million 2% Pharmaceuticals 7 million 2% Total 341 million 100%

UNFPA Global procurement of Reproductive Health Commodities 2012 Global UNFPA Procurement of RH commodities Total in US$ Global supply as % of total Implants 50 million 40% Injectables 28 million 22% Condoms (male) incl. sampling & testing 19 million 15% Oral Pills incl. emergency and POP 17 million 13% Female condoms 11 million 9% IUDs 1 million 0.50% Other (artwork, lubrication, packaging) 1 million 0.50%

Top Procurement Category Spends by Region (in USD) Region Contraceptives Freight Office furniture & IT Medical Devices & Pharmaceutic als Premises, Rent, Purchase, Construction Printing & Publication Professional Consultancy Services Transport. Equip. Total Africa 88,589,294 8,818,112 11,618,175 17,916,083 8,950,193 32,175,110 23,287,225 11,358,104 201,012,298 Asia 16,076,312 1,935,272 3,652,941 6,095,390 2,217,873 9,067,667 11,756,130 1,181,590 52,208,206 LAC 12,160,904 1,135,490 1,639,187 2,528,077 1,755,594 7,587,734 7,599,121 300,175 34,481,252 HQ 16,424 28,024 2,189,626 5,011,421 5,628,926 3,654,641 15,026,480 ASEAN 4,807,922 535,240 2,013,250 3,479,592 1,635,683 3,958,586 4,537,032 925,029 21,892,335 Total 121,650,856 12,452,138 21,113,179 30,019,142 19,570,764 58,418,023 50,834,149 13,764,898 324,620,571

Total UNFPA Procurement Volume by Region (in USD) Region Grand Total % of total volume Africa 201,012,298 59.0% Asia incl. Oceania 52,208,206 15.3% Latin America & The Caribbean 34,481,252 10.1% Europe, Eurosia & Arab states 21,892,335 6.4% HQ 15,026,480 4.4% DNK40 including Stock 9,948,344 3.0% Grand Total 341,301,763 100%

Agenda 1. PSB in Copenhagen what we do & who we are 2. What UNFPA procures 2012 statistics 3. Procurement Principles & Ethics

UNFPA s Procurement Procedures and Financial Regulations and Rules Four Procurement Principles are the basis of the UNFPA Procurement Procedures and are embedded in the FRR. These are based on ethical considerations. Procurement staff must follow these principles in all procurement situations: Best value for money Fairness, integrity and transparency Open and effective competition The interest of UNFPA

Ineligible Vendors Persons or entities included on the list of individuals and entities associated with Al-Qaida and/or the Taliban, which is maintained pursuant to United Nations Security Council resolution 1267, are ineligible to do business with UNFPA. No exceptions are permitted. Vendors banned by other UN organizations (disclosed on UNGM) and by World Bank.

UNFPA s Anti Fraud Policy UNFPA will reject a proposal to award a contract if it determines that the vendor has engaged in corrupt practices. UNFPA will declare a vendor ineligible if it determines that the vendor has engaged in corrupt practices in competing for or in executing a UNFPA contract. UNFPA will cancel or terminate a contract if it determines that a vendor has engaged in corrupt practices. Suppliers, their subsidiaries, agents, intermediaries and principals must cooperate with UNFPA s Department for Oversight Services (DOS) as required.

UNFPA s Anti Fraud Policy (Continued) Bid protest: Suppliers perceiving that they have been treated unfairly in connection with a solicitation, evaluation or award of contract may complain to the UNFPA Business Unit Head or contact the Chief of PSB at procurement@unfpa.org. UNFPA has adopted a zero tolerance policy on gifts and hospitality (drinks, meals, hospitality, calendars, etc.). Report fraudulent activities http://web2.unfpa.org/help/hotline.cfm Annual financial disclosure for UNFPA procurement staff

Examples of Unethical Supplier Behaviors Corrupt practices: Try to influence improperly the actions of a public official. Fraudulent practice: Mislead, or attempt to mislead, a party to obtain a financial or other benefit, or to avoid an obligation. Collusive practice: arrangement between two or more parties designed to achieve an improper purpose. Coercive practice: means impairing or harming, or threatening to impair or harm, any party to influence the actions of a party.

References UN Charter UNFPA Standard of Conduct Staff Regulations and Rules UNFPA Financial Regulations and Rules UNFPA Procurement Procedures Ethics Office website on UNFPA intranet

THANK YOU from the PSB Team in Copenhagen!