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2008 Annual Statistical Report on United Nations Procurement PDF

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2008 Annual Statistical Report on United Nations Procurement • Procurement of goods and services • All sources of funding • Procurement profiles of the Development Assistance Committee member countries • Procurement profiles of the top twenty developing countries and countries with economies in transition 2008 Annual Statistical Report on United Nations Procurement UNOPS would like to acknowledge the contribution of the various organizations to the 2008 Annual Statistical Report on United Nations Procurement. The views expressed in this publication do not necessarily reflect those of the United Nations. Copyright © 2009 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form by any means, electronic, mechanical, photocopying or otherwise, without prior permission of UNOPS. This document is available online at www.ungm.org. It has been published in electronic format only thereby eliminating the use of paper, ink, and transport emissions. Table of Contents Introduction .................................................................................................................................................................1 Glossary of terms .......................................................................................................................................................2 Executive Summary ...................................................................................................................................................3 Total procurement of goods and services for operational activities of the UN system .......................................3 Ten major countries of supply to the UN system in 2008 ...................................................................................4 Procurement by UN agencies in 2007 – 2008....................................................................................................5 Procurement from developing countries and countries with economies in transition .........................................6 Procurement from developing countries and countries with economies in transition by region .........................7 Procurement from developing countries and countries with economies in transition by top 10 UN agencies ...8 Top 20 developing countries and countries with economies in transition supplying UN operations in 2008...................................................................................................................................9 United Nations procurement and the Global Compact .......................................................................................10 Procurement from Global Compact members as a percentage of orders of USD 30,000 or more ....................10 Sustainability reporting in the UN system ...............................................................................................................12 About the report .........................................................................................................................................................15 Procurement profiles of the DAC member countries..............................................................................................16 Australia .............................................................................................................................................................17 Austria ................................................................................................................................................................18 Belgium ..............................................................................................................................................................19 Canada ...............................................................................................................................................................20 Denmark .............................................................................................................................................................21 Finland................................................................................................................................................................22 France ................................................................................................................................................................23 Germany.............................................................................................................................................................24 Greece................................................................................................................................................................25 Ireland ................................................................................................................................................................26 Italy .....................................................................................................................................................................27 Japan..................................................................................................................................................................28 Luxemburg .........................................................................................................................................................29 Netherlands ........................................................................................................................................................30 New Zealand ......................................................................................................................................................31 Norway ...............................................................................................................................................................32 Portugal ..............................................................................................................................................................33 Spain ..................................................................................................................................................................34 Sweden ..............................................................................................................................................................35 Switzerland .........................................................................................................................................................36 United Kingdom ..................................................................................................................................................37 United States ......................................................................................................................................................38 i | 2008 Annual Statistical Report on United Nations Procurement Procurement profiles of the top twenty developing countries and countries with economies in transition ...............................................................................................................39 Afghanistan ...................................................................................................................................................40 Argentina .......................................................................................................................................................41 Brazil .............................................................................................................................................................42 China .............................................................................................................................................................43 Colombia .......................................................................................................................................................44 Congo, Democratic Republic of.....................................................................................................................45 Egypt .............................................................................................................................................................46 Ecuador .........................................................................................................................................................47 India...............................................................................................................................................................48 Indonesia .......................................................................................................................................................49 Jordan ...........................................................................................................................................................50 Kenya ............................................................................................................................................................51 Lebanon ........................................................................................................................................................52 Panama .........................................................................................................................................................53 Peru ...............................................................................................................................................................54 South Africa ...................................................................................................................................................55 Sudan ............................................................................................................................................................56 Turkey ...........................................................................................................................................................57 Uganda ..........................................................................................................................................................58 United Arab Emirates ....................................................................................................................................59 Procurement of goods and services - all sources of funding ...........................................................................60 Total procurement of goods by country of procurement and services by country of head office ..................61 Total procurement by UN agency ..................................................................................................................64 Procurement of goods by country of procurement and source of funds .......................................................65 Total procurement of goods by UN agency and country of procurement ......................................................68 Procurement of services by contractor’s country of head office and source of funds ...................................83 Total procurement of services by agency and country of procurement .........................................................86 Top 10 items/product groups procured by UN agencies ...................................................................................98 Major goods and supplies ordered by UN agencies ..........................................................................................105 Major service and works contracts placed by UN agencies .............................................................................200 Project personnel - all sources of funding ..........................................................................................................299 Annexes..................................................................................................................................................................303 Annex 1 - Abbreviations ................................................................................................................................304 Annex 2 - Developing countries and those with economies in transition ......................................................305 Annex 3 - Industrialized countries .................................................................................................................307 ii | 2008 Annual Statistical Report on United Nations Procurement Introduction Total UN procurement volume increased in 2008 by $3.5 billion, representing a percentage increase of 34%. This unprecedented growth in procurement delivery is primarily attributable to an increase in peacekeeping operations and the delivery of food stuffs. Agencies increased their procurement of goods by $1.5 billion and that of services by $2 billion. The 2008 data further confirm that the UN’s requirement for services matches and even exceeds that of goods, reversing the trend of previous years where the proportion of goods procured far outweighed that of services contracted. The 2008 report analyses procurement from developing countries and countries with economies in transition, and examines United Nations system performance in increasing opportunities for vendors from developing countries and countries with economies in transition. Significant progress has been made towards achieving that objective (refer Figures 3-8 in the Executive Summary for more detail). In addition, the 2008 report looks at procurement by United Nations organizations from vendors that support the ‘Global Compact’. The Compact measures engagement by the United Nations system with companies that take corporate social responsibility seriously, an increasingly important consideration in the global marketplace. While United Nations organizations give no preferential treatment to Global Compact signatories, the volume of procurement with registered Global Compact vendors shows a modest average increase over the period 2006-2008. The 2008 statistical report features, for the first time, an annual thematic supplement that focuses on current issues in procurement. The focus for the 2008 supplement is sustainable procurement. It includes an overview of the international debate on the subject, case studies and contributions from practitioners and international experts. 1 | 2008 Annual Statistical Report on United Nations Procurement Glossary of terms All sources of UN funding: Covers technical cooperation and other development assistance from regular, extra budgetary and trust funds, as well as emergency, humanitarian and peacekeeping operations. Development Assistance A key forum of major bilateral donors who work together to increase the Committee (DAC) member effectiveness of their common efforts to support sustainable development. countries: DAC consists of 22 member countries as well as the Commission of the European Communities. Developing countries and Countries for which the United Nations provides financial/ technical assistance. countries with economies in A list of these countries is attached as Annex 2. transition (DC/ET): Fellowships: Scholarships and study tours awarded to individuals for study and training within various operational activity programmes. Activities which do not involve individual award of a scholarship, such as group training and seminars, are not included. Goods: Includes both equipment and supplies. International Project Personnel: Experts and consultants hired internationally for technical cooperation activities. National Project Personnel: National personnel of all categories, including experts and consultants, hired locally for technical cooperation activities. Procurement: The acquisition of goods and services. Services: Contracts with companies/contractors or consulting firms. This does not include the hiring of individual experts and consultants. 2 | 2008 Annual Statistical Report on United Nations Procurement Executive Summary Total procurement of goods and services for operational activities of the UN system The overall procurement volume – goods and services combined – of UN agencies during 2008 increased to $13.6 billion from $10.1 billion in 2007, a gain of about 34.4%. The total procurement of goods by UN agencies went up $1.5 billion, an increase of 28.1%, while procurement of services grew $2 billion, an increase of 41.3%. During the five years from 2004 to 2008 UN procurement more than doubled in volume from $6.5 billion to $13.6 billion, primarily attributable to a growth in the procurement of services of $4.1 billion for the same period. Figure 1 Services Total procurement of goods and services, 2004-2008 Goods ($ Million) 16,000 13,594 14,000 12,000 10,113 9,404 10,000 6,840 8,331 8,000 6,527 4,839 4,739 3,777 6,000 2,743 4,000 6,754 2,000 3,783 4,553 4,665 5,273 0 2004 2005 2006 2007 2008 From 2004 to 2008 UN agency procurement of services rose as a share of total procurement, slightly overtaking the procurement share of goods for the first time in 2006 and again in 2008. In 2008 the share of services exceeded that of goods by 0.6%, reversing the 2007 data where the procurement of goods exceeded that of services by 4.6%. Figure 2 Services Proportion of goods and services procured, 2004-2008 Goods 70.0% 60.0% 50.0% 40.0% % 2300..00%% 58.0 2.0% 54.7% 45.3% 49.6% 50.4% 52.1% 47.9% 49.7% 50.3% 4 10.0% 0.0% 2004 2005 2006 2007 2008 3 | 2008 Annual Statistical Report on United Nations Procurement Ten major countries of supply to the UN system in 2008 The 10 major countries to supply UN agencies in 2008 included four developing countries – India, Afghanistan, Peru and Sudan. India has featured in this list since 2000, and in 2008 was the second largest supplier to the UN system, with a 4.6% share of total UN procurement volume. Procurement from India includes pharmaceuticals, medical equipment, cold chain equipment and diagnostic test kits, procured primarily by UNICEF. Procurement from Afghanistan and Peru consisted primarily of construction services executed with national vendors by UNDP and UNOPS respectively. Procurement from Sudan largely consisted of construction services and fuel oils procured by UN/PD in support of peacekeeping operations. Table 1 Top 10 countries of supply to the UN system in 2008 Countries Goods Services Total % $ Million of Total USA 311.4 737.4 1,049.0 7.7% India 562.9 57.1 620.0 4.6% Switzerland 353.5 218.5 572.0 4.2% France 435.1 68.3 503.4 3.7% Italy 311.7 154.3 466.0 3.4% Russian Federation 35.7 400.8 436.5 3.2% Afghanistan 49.0 366.6 415.6 3.1% Peru 195.0 213.0 408.1 3.0% Sudan 199.8 184.8 384.6 2.8% Denmark 254.3 73.1 327.4 2.4% Top 10 Total 2,708.5 2,473.9 5,182.4 38.1% Grand Total 6,754.0 6,839.9 13,594.3 100.0% The percentage share of total goods and services procured from the top ten suppliers to the UN system decreased between 2004 and 2008 (see Figure 3). Over the longer term UN agency sourcing strategies therefore appear to be succeeding in broadening the general distribution of procurement opportunities to vendors. While over the previous two years the percentage share has increased by an aggregate of 4.4%, the 2008 percentage of 38.1% remains 8.5% lower than the levels recorded in 2004. Figure 3 Percentage share of total procurement volume of the top 10 countries to supply the UN system 47% 41% 38% 38% 40% 34% 20% 2004 2005 2006 2007 2008 4 | 2008 Annual Statistical Report on United Nations Procurement Procurement by UN agencies in 2007-2008 The table below lists individual UN agency procurement volumes for 2007 and 2008. Data are presented by the percentage share from DC/ET (developing countries and those with economies in transition). Of the 31 reporting UN agencies, 52% increased their procurement volume over the previous year. UN/PD and WFP recorded the largest volume increases, both increasing their volume by some $1.2 billion. Table 2 Procurement by UN agencies, including percentage procured in developing countries and countries with economies in transition, 2007-2008 ($ Millions) 2007 2008 Agency Goods Services Total (%) Goods Services Total (%) ESCAP 5.03 6.28 11.32 89.30% 2.14 5.16 7.30 96.12% ESCWA 2.38 2.39 4.78 78.28% 1.31 1.70 3.01 78.33% ECE Data included in UNOG figures Data included in UNOG figures ECLAC 3.49 6.73 10.22 77.92% 1.31 4.51 5.81 90.13% FAO 54.04 30.80 84.84 40.52% 72.73 35.83 108.57 45.86% IAEA 86.17 45.11 131.28 10.23% 63.63 36.28 99.91 17.36% ICAO Data not submitted Data not submitted ICTR Data not submitted Data not submitted ICTY Data not submitted Data not submitted IFAD 1.64 28.02 29.65 1.14% 3.94 27.09 31.02 1.57% ILO 32.17 38.06 70.24 43.06% 15.17 38.69 53.86 59.06% INSTRAW 0.05 0.04 0.09 100.00% 0.06 0.07 0.13 100.00% ITC 1.07 4.42 5.49 12.31% 0.47 3.60 4.07 22.18% ITU Data not submitted Data not submitted PAHO 293.76 293.76 0.11% 376.66 376.66 0.43% OPCW 5.64 10.91 16.55 36.18% 5.41 7.74 13.15 31.54% UNCTAD 0.36 1.65 2.01 98.88% 0.86 1.98 2.83 93.96% UNDP 627.06 1,797.04 2,424.11 80.65% 724.46 2,135.31 2,859.77 80.96% UNDP/IAPSO 93.02 13.21 106.23 1.32%Procurement merged with UNOPS 1/1/2008 UNECA 4.33 4.33 24.12% 1.76 1.76 29.42% UNESCO 65.96 165.22 231.18 47.11% 114.84 146.35 261.19 37.54% UN/DPKO Data included in UN/PD figures Data included in UN/PD figures UNFPA 177.89 45.86 223.75 50.14% 138.05 114.87 252.92 39.22% UNHCR 82.33 45.16 127.49 27.61% 206.75 159.35 366.10 71.51% UNICEF 1,368.51 1,368.51 47.18% 1,540.48 1,540.48 42.25% UNIDO 22.55 32.36 54.90 71.34% 25.52 28.37 53.89 45.16% UN/PD 873.07 1,031.19 1,904.26 40.60% 1,345.87 1,826.40 3,172.27 33.83% UNOG 21.80 47.13 68.92 0.80% 12.49 51.92 64.41 2.25% UNON 13.96 42.41 56.37 53.59%Data not submitted UNOPS 205.95 452.99 658.94 79.63% 358.90 503.95 862.85 71.69% UNOV 7.99 14.39 22.38 7.96% 5.47 10.88 16.34 9.79% UNRWA 138.55 41.53 180.07 85.06% 150.82 54.49 205.31 85.68% UNU 0.10 2.63 2.74 13.80% 0.35 1.80 2.16 48.07% UNV 0.86 2.92 3.78 9.56% 0.40 10.63 11.03 1.10% UPU 0.72 0.72 80.03% 1.83 1.83 73.95% WFP 885.48 922.97 1,808.45 43.62% 1,579.55 1,484.37 3,063.92 46.00% WHO 142.10 142.10 22.98%Data not submitted WIPO 51.34 51.34 1.57% 138.24 138.24 1.62% WMO 3.79 7.93 11.72 12.17% 2.92 5.68 8.59 5.26% WTO Data not submitted 0.17 4.67 4.84 0.00% TOTAL 5,273.15 4,839.36 10,112.50 53.65% 6,754.33 6,839.89 13,594.26 51.29% 5 | 2008 Annual Statistical Report on United Nations Procurement Procurement from developing countries and countries with economies in transition General Assembly resolution 57/279 of January 2003 on procurement reform (paragraph 6) encouraged UN organizations to increase sourcing opportunities for DC/ET suppliers. GA/RES/61/246 of March 2007 (paragraph 24) reiterated this request. In response, UN agencies have placed more orders with suppliers from these countries. The growth of such orders has more than doubled in dollar terms from 2004 to 2008, as shown in Figure 4, below. Figure 4 Services UN procurement from developing countries and countries with Goods ($Million) economies in transition, 2004-2008 8,000 6,972 7,000 5,425 6,000 5,166 3,337 5,000 3,594 4,000 2,673 2,656 2,681 3,000 1,504 954 2,000 3,635 2,510 2,752 1,000 1,727 2,090 0 2004 2005 2006 2007 2008 Although in 2008 procurement from DC/ET increased by $1.5 billion over 2007, their share of overall total procurement volume decreased by 2.9%. Of note, procurement from DC/ET exceeded 50% of total UN procurement volume in both 2007 (53.6%) and 2008 (50.7%), while procurement from industrialized countries has remained steady at 37.7% in 2007 and 37.8% in 2008. Procurement from unspecified countries has risen from $0.8 billion in 2007 to $1.4 billion in 2008. Countries are unspecified when agencies cannot attribute the origin of the supplier in their management information systems, as is the case with WFP’s transportation data which account for $1.2 billion of the procurement from unspecified countries. Figure 5 UN procurement from industrialized countries, developing countries and countries with economies in transition, 2004-2008 (as a percentage of the total procurement volume) 60.0% 40.0% Industrialized countries 20.0% Developing countries & countries with economies in transition Unspecified Countries 0.0% 2004 2005 2006 2007 2008 6 | 2008 Annual Statistical Report on United Nations Procurement

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2.8%. Denmark. 254.3. 73.1. 327.4. 2.4%. Top 10 Total. 2,708.5. 2,473.9 .. making decisions based on life-cycle costs, associated environmental and social In 1999, the United Nations Secretary General Kofi Annan challenged
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