Bhutan

Procurement

UNDP procurement guidelines categorically prohibit the acceptance of any gifts and favours from vendors and partners by UNDP staff members.

UNDP staff will not accept any gift, honour, decoration, remuneration, favour or economic benefit from any source external source to their organization; this also includes Governments as well as commercial firms and other entities.

This prohibition on receiving gifts and favours extends beyond UNDP policy and is also embodied and institutionalised in the Code of Conduct established by the International Civil Service Commission of the United Nations.

Procurement is the overall process of acquiring goods, civil works and services which includes all functions from the identification of needs, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration through the end of a services’ contract or the useful life of an asset.

Types of Competition

1. Open International Competition: OIC gives all eligible and qualified suppliers/bidders to compete for goods, services and civil works, valued at USD 100,000 or more.

2. Limited International Competition: LIC narrows the competition amongst a shortlist of qualified suppliers.

3. Local Competition: This competition is generally done for procurement which can be made within the country.

METHODS OF SOLICITING OFFERS

1. Request for Quotation: Used for goods, civil works and services valued between USD 2500-USD 100,000.

2. Invitation to Bid: ITB is used for procurement of goods valued at USD 100,000 or more or where technical approaches to the relevant project or the management/supervision of a project activity are not requested of prospective Vendors. ITBs request of prospective Vendors cost requirements to meet the precise specifications of goods sought by UNDP.  ITBs may also apply for the procurement of civil works or services, which can be quantitatively and qualitatively expressed. 

3. Request for Proposals: A Request for Proposal (RFP) is recommended for all contracts exceeding USD 100,000 where the desired inputs and/or outputs cannot quantitatively and qualitatively be expressed in sufficient details at the time the invitation is made.

4. Direct Contracting: This is normally done for purchases where a Business Unit or the HQ has LTA with a supplier.

5. Local Shopping: This is a procurement method based on the comparison of informal price quotes obtained from potential Suppliers to assure best value for money, and is an appropriate method for the procurement of readily available off-the shelf goods or standard specification commodities valued less than USD 2,500, or simple civil works also valued less than USD 2,500.

Evaluation of Offers:

 Offers which are responsive and provide the best value for money and selected for contracting.

The various kinds of contracts are as below:

1. Purchase orders: used for goods and services valued above USD 2500.
2. Institutional services Contract:: used to contract with an institution or other legal entities for professional services valued at USD 30, 000 or less.
3. Professional services contracts are employed to contract with an institution or other legal entity in order to perform professional services generally valued above USD 30,000, for specified deliverables.
4. Reimbursable loan agreements (RLA) are used when contracting with a government institution; university; or other legal entity comprised of at minimum three staff personnel to engage consultancy services of select individuals.
5. Civil works agreement is made for the procurement of transportation, infrastructure, civil or environmental engineering services.
6. A long-term agreement (LTA) is a mutual arrangement with Supplier to provide goods or services as required, over a specific period of time, with the quantity to be determined at prescribed prices or pricing provisions. Long-term purchase agreements are common practice to ensure a reliable source of supply goods and services at the lowest price.
7. Special service agreements (SSA) are utilized to contract individual consultants or temporary support personnel for services on a short-term basis, not to exceed 11 months.
8. Service contracts are employed to procure individual consultants or support personnel as needed on a long-term basis.