The life-cycle costs of products and services is a key criterion of UNDP's procurement until 2017

Aug 31, 2015

PHOTO: UNDP MONGOLIA

Poverty eradication, reducing social exclusion and turning toward the green practices are objectives of UNDP. The fulfilment of this vision requires the efficient and effective provision of goods and services, making procurement a strategically important for UNDP.

What kind of procurement do we want?

Procurement accounts for nearly two thirds of all UNDP expenditures, which means that the planned budget for the period of 2014-2017 counts aprox. USD 22 billion, with the annual plan of execution to be greater than USD 5 billion. Also, the strategic function of our organization is to designs its procurement from the earliest stages in order to implement all neccessary criteria into each phase.

UNDPs' Global procurement Strategy for the period 2015-2017, signalizes a new approach in procurement: the one that is innovative, cost-effective, environmentally friendly and in accordance with principles which promote sustainability.

With this Strategy UNDP will focus on:

  • Cleaner supply chains;
  • Purchasing innovation;
  • Better integration with programmes;
  • Stronger partnerships;
  • Transparency, integrity, and accountability;
  • Measuring impact and
  • Assessing and building capacity. 

The focus is not only on the purchase price as the main criterion, but on the life cycle of products and services. Also, the emphasis is on sustainability, the social costs of carbon emission and women’s empowerment. Through this reorientation, UNDP will make a significant investments in renewable energy source and energy technologies such as hybrid vehicles or devices on solar energy.

Why do we care about innovation?

In addition to standard procurement process, UNDP will go even a step further, considering the pre-commercial procurement as an important part of procurement processes which explores the innovative solutions of those products that have not yet found their place in the market. This increases the demand and the possibility of placing them to the market, with intention to  establish a strong single market for innovative products and services, encouraging and  strengthening competition between companies.

In Croatia, UNDP is building capacity in public sector and among its institutions for the application of the green public procurement criteria. For more information and specific examples of green procurement practices, please visit the Green Public Procurement portal.

 

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More information about the UNDPs' Strategy you can find HERE.