Procurement is the overall process of acquiring goods, civil works and services. The process 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.
UNDP Cambodia procures goods and services for implementation of projects and activities under its Country Programme Action Plan, as well as maintenance and functioning of its office. In addition, we may occasionally procure on behalf of other UN agencies in Cambodia. Procurement is administered by the Procurement Unit, which is responsible for solicitation of offers, awarding and management of contracts and purchase orders.
Types of Competitions
Depending on the nature and size of the project and its procurement elements, UNDP may use any of the following competitive methods set out in its relevant guidelines to procure goods, civil works or services. Commonly used competitive methods include:
- Open International Competition (OIC);
- Limited International Competition (LIC); and
- Local and/or National Competition.
1. Request for Quotation (RFQ):
A Request for Quotation is commonly used for the procurement of goods, services and/or civil works where the contract value is between US$5,000 and US$150,000.
2. Invitation to Bid (ITB):
An Invitation to Bid is generally used for the procurement of goods valued at US$150,000 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 prospective vendors to detail cost requirements in order to meet the precise specifications of goods sought by UNDP. The ITB method may also be applied in the procurement of civil works or services that can be quantitatively and qualitatively expressed.
3. Request for Proposal (RFP):
A Request for Proposal is recommended for all contracts exceeding US$150,000 where the desired inputs and/or outputs cannot be quantitatively and qualitatively expressed in sufficient details at the time the invitation is made.
4. Direct Contracting:
“Direct Contracting” is another procurement method that may be used under a limited number of exceptional circumstances. It should only be based on proper and solid justification.
5. Individual Contract (IC):
The Individual Contract is used for the procurement of services of an individual to perform non-staff tasks in connection with clear and quantifiable deliverables which shall be listed in the contract and linked to payment. These services can be intellectual in nature (requiring a consultant) or support services (requiring a contractor).