Procurement:
The United Nations, including its
many affiliate agencies, represents an international
market of US$ 3 billion for suppliers of virtually all
types of goods and services. Such a market is well worth
your serious consideration. It provides an excellent
springboard to introduce your goods and services to
other countries and regions. If one adds the inputs
by recipient governments in terms of loans from international
lending institutions, the estimate value of business
opportunities emanating from the United Nations system
and the Development Banks approaches US $ 30 billion
annually.
With over 135,000 contracts and
purchase orders issued annually, the average value of
a typical UN contract is small, i.e. US$ 20,000 and
no more than 2% of the total number of UN procurement
orders are above US$ 1000,000. A large number of small
orders are thus the common dimension of the UN business
to cater to requirements in the field.
The procurement rules and procedures
of the various organizations reflect institutional differences
as well as differences in size, activities and years
of existence. However, common principles are applicable
throughout the system of organizations. The one most
significant common denominator for the UN system is
that it operates with "public funds", requiring
that equal opportunity to participate be given to potential
suppliers from all member countries.
For 1997, 38% of total procurement
were professional services (sub-contracting), the rest
being goods. Most procurement by the UN system is done
from industrialized countries, although the share from
developing countries was 43% in 1997. In line with General
Assembly resolutions and decisions by other UN Agency
Executive Boards, all organizations of the UN system
are making great efforts to identify new sources of
supply, particularly from developing and under utilized
donor-countries, in order to create an expanded and
more equitable geographical distribution of procurement.
Many UN agencies have delegated authority to their country
offices to undertake procurement. As developing countries
become more self-reliant in managing tier own technical
cooperation, national execution of projects and programs
increases, including procurement of necessary goods
and services.
(Excerpt from United Nations System:
General Business Guide for Potential Suppliers of Goods
and Services, published by IAPSO)
