Significant Importance of Implementation E-Procurement in UN Agency

Abstract

United Nations was established in 1945 with its Headquarters in San Francisco, California United States. There are more than 40 UN agencies operating around the world, focusing on different mandates such as poverty eradication, improved healthcare, provision of shelter, food and nutrition, governance, sustainable development, migration management and refugee resettlement. Different UN agencies work autonomously with their Headquarters based in different parts of the world. Agencies program interventions are later consolidated at the UN HQs. At country level, the Resident Coordinator’s (RC) Office coordinates with all UN agencies operating in the country. There is a Country Director for each agency who reports to the Country Representative in the RC Office. Different sections which include operations, resource management (HR, Finance and Procurement) and program work in each agency according to their specified roles. The procurement department for each UN agency is centralized and managed by the Resource Management Unit. There is a head of procurement at each agency. The final endorsement and approval is given by the Country Director of that particular agency. The procurement manual is in line with the overall UN policy documents, which includes different thresholds. The manual segregates each procurement under services and supplies. During 2009 – 2018, the quantum of procurement at UN, ranged between USD 13.8 billion to USD 18.8 billion. As highlighted, involvement of significant amount of funds makes this area not only critical but of high-risk as well. The associated risks involved due to significant use of funds in the process makes it important for UN to review and improve processes timely and efficiently. The United Nation Development Programme (UNDP) provides services to refugees, migrants and internally displaced persons (IDPs) concerning migration. UNDP established its office in Pakistan in 1981, where the Government requested to intervene due to influx of Afghan refugees. Pakistan signed as a Member State of UNDP in 1992 and established a Cooperation Agreement with UNDP in October 2000. UNDP follows its own procurement manual, which segregates ‘procurement’ under three categories – supply, services and works. Supply means goods mainly; services include intellectual and non-intellectual services whereas work is a mix of services and supplies like construction contracts. On paper, the manual defines principles on which procurement should be based. There are no thresholds defined for opting certain type of procedure, but process is well-defined. There is a process of sole sourcing where no competitive process is required, second is low value procurement which means comparing quotes and prices of minimum of three vendors. The last process is called competitive bidding where tenders are done and process is followed. This project highlights how procurement at UNDP Pakistan is managed currently, what practices are followed and what are the challenges and risks involved in the procurement process. Through this research, we have tried to correlate how e-procurement can also play a vital role in filling gaps and mitigating associated risks.