To promote transparent and fair competition, UNDP Iran conducts competitive procurement process through public advertising for all procurement cases.
How do we do business?
UNDP Procurement is based on competitive bidding. Depending on the type, complexity, size and value of the project and its procurement elements, commonly used methods of solicitation include:
Request for Quotation (RFQ)
An RFQ is an informal invitation to submit a quotation, usually for goods/services/civil works at a value between US$ 5,000 and US$ 150,000. Prices, and other commercial terms and conditions are requested, and award is made to the lowest priced technically acceptable offer.
Invitation to Bid (ITB)
An ITB is a formal invitation to submit a bid, usually associated with requirements that are clearly and concisely defined, with an estimated procurement value of US$ 150,000 or more. Normally price is the sole determinant in making an award. Where all technical criteria are met, award is made to the lowest bidder.
Request for Proposal (RFP)
An RFP is a formal request to submit a proposal, usually associated with requirements for services, which cannot be clearly or concisely defined. Price is only one of several factors comprising the evaluation criteria. Award is made to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents and is evaluated to be the lowest cost to UNDP.
In some cases, exceptions to competition are being made and direct contracting is used. This usually happens when a Long-Term Agreement (LTA) is in place, either globally (IAPSO or HQ) or locally (at country office level).
For values less than US$ 5,000, UNDP Iran may engage by soliciting price assessments.
Evaluation of offers
Depending on the procurement method, different factors take on the key role in the evaluation process. When evaluating RFQs and ITBs, the price is the most important element. In contrast to this, and RFP requires a technical evaluation. The technical component primarily determines whether the proposal will be accepted or declined. Additionally, UNDP evaluates its products and services based on the following criteria:
Meet technical specifications
Accuracy of documentation
Speed of response
Provides Technical Solutions Competency