Procurement Division

1
Procurement Division

• Current Procurement Approval Procedures
• Status of Governance Structure Review

2
Current HQ Approval Procedure

• As per Financial Regulations Rules (RR)
  105.13, USG/DM is responsible for the procurement
  function of the UN
• Presently, procurement authority has been further
  delegated to the ASG, Controller
• Today, Procurement Division reports to the ASG,
  Controller and selected Staff receives a
  delegated procurement authority from ASG
• Highest delegation for the Chief, Procurement
  Service at 200,000
• Awards in excess of 200,000 is subject to
  review by the Headquarters Committee on Contracts
  (HCC)
• HCC renders advice to ASG vested with procurement
  authority who approves proposed awards
• Contracts are signed by Chief, Procurement Service

3
Current Approval Procedures for the Peacekeeping
Missions

• Procurement authority has also been delegated to
  the ASG, Office of Mission Support, Department of
  Peacekeeping Operations (ASG/OMS/DPKO)
• Delegation has limitation on core requirements
  ( 1 M), non core requirements ( 200,000)
• In addition, the delegation stipulates special
  requirements
• The ASG/OMS/DPKO re-delegates the authority to
  the Directors of Administration (DOA)/Chief
  Administrative Officers (CAO) of the missions for
  local procurement
• The DOA/CAO re-delegate the authority to Chief
  Procurement Officers and Procurement Staff
• Highest delegation is for the Chief Procurement
  Officer up to 75,000

4
Current Approval Procedures for the Peacekeeping
Missions

• As per Financial RR 105.13, Local Committee on
  Contracts (LCC) renders advice to DOA/CAO for
  award proposals between 75,000 and 200,000 ( lt
  1 M for core requirements)
• DOA/CAO submits award proposals in excess of
  200,000 (gt 1 M for core) for the review of
  HCC through the Procurement Division
• Presently, ASG, Controller approves award
  proposals based on advice of the HCC

5
Current Approval Procedures for the Peacekeeping
Missions

• For operational efficiency, DOA/CAO are
  authorized to approve core requirements up to
  1 M following the LCC advice
• Core requirements include essential goods and
  services, which by nature lend themselves to
  local procurement (building material, laundry
  service, local maintenance, etc.)
• DOA/COA are authorized to approve non core
  requirements up to 200,000 following LCC
  advice
• Special requirements include goods and
  services, which by nature lend themselves to
  centralized procurement under Procurement
  Division authority
• Special requirements are vehicles, prefabricated
  building, ICT software and hardware, etc.

6
Peacekeeping Missions Procurement Staff

• Procurement Staff is under DPKO control but
  cleared by Procurement Division
• Selection
• Delegation authority level
• Procurement Division provides training and
  guidance as required

7
Governance Structure

• Reference A/60/846/Add. 5 para 45 and 46
• Quote Audit reports identified possible
  weaknesses in the control environment owing to
  the split of responsibilities between DM and DPKO
  for peacekeeping procurement
• Working Group (WG) to review governance structure
  for peacekeeping procurement has been established
  with an objective to
• Identify options for the management and division
  of responsibilities for peacekeeping acquisition
  between DM and DPKO
• Evaluate relative strengths and weaknesses of
  each proposal
• Make recommendation to the Management of DPKO and
  DM
• Composition Senior Staff level from OMS/DPKO,
  PD and HCC/DM
• Proposals on revised governance structure should
  align procurement responsibility and authority,
  control of resources, accountability and others
  factors
• Proposals have been developed and exchanged
• Proposals will be further analyzed by the WG
• Formal report should be issued in the resumed
  61st Session