Performance measurement of the procurement function

Staffing efficiency is only one measure of the cost efficiency of procurement performance.

The performance indicator on the average length of the procurement cycle is not clearly linked to the stipulated procurement lead times.

Client satisfaction surveys should thus be part of the process of measuring procurement performance.

Procurement Services should identify priorities for the guidance and training of its staff members in a structured manner, for example, based on the outcomes of their performance evaluations, and with reference to the organisation's procurement requirements and the Service's performance.

There was widespread support for efforts that could be made to assist in measuring performance within an organization's procurement function as well as determining costs of procurement, thereby increasing efficiency and effectiveness.

In paragraph 557, the Administration agreed with the Board's recommendation that it implement low value procurement principles, in line with the United Nations Procurement Manual and the Financial Regulations and Rules of the United Nations, in order to optimize procurement and staff performance.

These benefits should be the subject of an evaluation, including findings on procurement performance benchmarks and other best practices resulting from procurement reforms at United Nations Headquarters and other duty stations as appropriate.

On the sharing of procurement performance benchmarks and best practices (recommendation 1) and the concept of lead procurement agency (recommendation 2), it should be noted that since 2004, the HLCM has incorporated the work of the Inter Agency Procurement Working Group (IAPWG) into the HLCM agenda.

The Procurement Service has been making efforts to obtain vendor performance evaluations from requisitioners regularly and prior to the extension of contracts.

The implication is that it may be impossible to know the exact number of staff performing procurement functions in the decentralized organizations, which in turn makes it difficult to measure the cost of procurement or other performance dimensions.

The data in the table should be complemented by other comparisons in order to facilitate the development of performance benchmarks for the international procurement system.

The valid points raised in the preceding paragraph apply by and large equally to all organizations in terms of procurement of goods, works and services, and where procurement performance can be dependent on support services provided by other internal or external units.

The existing procurement systems did not provide the underlying systems needed to effectively monitor performance against the activities and outputs set by the unit.

The General Legal Division is proposing to conduct seminars in 2005 for the Procurement Service on software licence agreements, performance bonds and liquidated damages.

In paragraph 312 of the report, UNDP agreed with the Board's recommendation that it evaluate supplier performance in terms of the guidance provided in the UNDP Procurement Manual.

Consistent with injunctions by the General Assembly regarding the desirability of measuring procurement performance, the Inspector identifies some of the techniques that should be employed to that end.

Requests the Secretary General to ensure that the Department of Peacekeeping Operations communicates the information on vendor performance to all aviation offices involved, including the Procurement Service.

Requests the Secretary General to ensure that the Department of Peacekeeping Operations communicates the information on vendor performance to all aviation offices involved and the Procurement Service.

It should be added in this respect that the General Assembly and ACABQ have called for a system for measuring the cost effectiveness of procurement performance by the organizations.

In paragraph 526, the Board recommends that the United Nations Office at Geneva address the concerns regarding procurement functions, pertaining to the assessment of vendor performance and the segregation of duties.

Requests the Secretary General, in order to improve the transparency and efficiency of procurement in peacekeeping operations, to ensure implementation of and compliance with the mechanisms aimed at facilitating the compilation by all missions of assessment of progress and final performance of vendors and its immediate transmission to the Procurement Service at Headquarters

However, the scope and thrust of this report did not allow for any detailed inter organization comparison of procurement quality variables and process efficiencies similar to the analysis of productivity and cost efficiency shown in Table 3, which the Inspector has used as one example of how procurement performance could be measured.

Overview of procurement

Requests the Secretary General, in order to improve the transparency and efficiency of procurement in peacekeeping operations, to ensure implementation of and compliance with the mechanisms aimed at facilitating the compilation by all missions of an assessment of progress and final performance of vendors and its immediate transmission to the Procurement Service at Headquarters

During our interim visit, to which this report refers, we focused on activities carried out by the Office of the Comptroller General, performance management, procurement, as well as the use of consultants and experts.

Thirdly, it should considerably facilitate procurement reform and the pooling of procurement services.

Basic information usually included in the invitation to tender is usually provided, such as the identity of the procuring entity, the nature of the object of the procurement, contractual terms, and quality and performance standards.

Rationalization of procurement practices

Distribution of procurement activities

In paragraph 238 of the Board's report, the Economic and Social Commission for Western Asia (ESCWA) agreed with the Board's recommendation that it (a) establish a supplier review committee as required by section 5.03 of the Procurement Manual, and (b) review supplier performance prior to the awarding of contracts to vendors, pursuant to section 5.14 of the Procurement Manual.

Procurement

Procurement

Procurement

Procurement

About 20 per cent of such procurement is performed by field based peacekeeping procurement units.

The Procurement Services should investigate ways in which the procurement plan can be enhanced as a tool in the management of the entire procurement process.

In the meantime, the Procurement Service will organize a second round of the advanced field procurement training programme to upgrade skills of procurement staff in the field missions.

(d) Networking of procurement services

Procurement management

Procurement Unit

Procurement planning

Procurement reform

Procurement report

Procurement opportunities