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CPAG Management Board Regular Session 2013

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Common Procurement Activities Group United Nations Office at Geneva and Member Organizations

Prepared by: CPAG Secretariat Management Board Regular Session 2013

Annual Report for the CPAG Management Board Regular Session 2013

Members' representatives:

The Management Board held its 2013 Regular Session on 3rd July 2014 at the Palais des Nations, Geneva.

The Officers are:

Outgoing Chairperson: Mr. David Rusinga (WMO)

Secretariat: Mr. Stephen Farrell (UNOG) Mr. Hicham Maoual (UNOG)

Organization Representatives

1. ILO Mr. David Macdonald

2. ITC Mr. Nitzan Weiss 3. ITU Mr. Dietmar Plesse 4. WTO Ms. Alessandra Caratozzolo 5. UNOG Mr. Stephen Farrell 6. WHO Mr. François Jorda 7. WIPO Mr. Giorgio Fraternale 8. WMO Mr. David Rusinga 9. UNESCO-IBE Mr. Mohamed Bouassami

10. IOM Ms. Anne Delaunay 11. UNHCR Mr. Isaac Mcekeni 12. UNICEF Mr. John Flanagan 13. Global Fund Mr. Alan Taylor 14. UNAIDS Mr. Francisco Martinez 15. Gavi Alliance Mr. Calin Schiau


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The 2013 Management Board Regular Session was chaired by the Outgoing Chair, Mr. David Rusinga from the World Meteorological Organisation, who welcomed the CPAG Management Board and presented the proposed Agenda. The Management Board unanimously adopted the Agenda below.

Item 1 Adoption of the Agenda Item 2 Introduction Item 3 Highlights of CPAG Joint procurement activities during 2013

A. Common Contracts B. Shared Contracts

Item 4 Completed 2013 Common projects Item 5 Activities, Costs and Benefits for 2013

A. Meetings held B. Operational Costs

Item 6 Proposed Activities & Costs for 2014 A. Ongoing procurement and harmonization projects B. Proposed activities C. Proposed meetings D. Operating Costs E. New CPAG Membership in 2014 F. Nominations of Chairmanship


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Introduction

Simplifying and harmonizing UN procurement activities for greater efficiency and effectiveness – that is the ambitious goal of the Common Procurement Activities Group (CPAG) of the Geneva-based international organizations. Volume purchase agreements create more effective and coherent business practices and lower the cost of commonly required goods and services for all. The group-led procurement strategy benefits from pooling experience and research, exchanging best practices and collaborating on procurement projects. CPAG Members are combining their efforts together to draft contractual documents applicable to all Members that take into account the specific general terms and conditions of each organization. These efforts improve legal and contracting aspects and create a more harmonized approach in CPAG bidding exercises. While it is well recognized that CPAG collaboration provides significant intangible resource utilization savings for each member, the major tangible benefits of the CPAG collaboration is the realization of Estimated Cost Avoidances (ECA) which are calculated by each member on the basis of Purchase Price Variance (PPV) methodology. Where possible, these tangible benefits are captured in this report with the members applying the following most commonly used PPV. 1. price difference from other offers; 2. discounted from the catalogue or corporate price; and 3. of price difference from previous price.

Secretariat

Common Procurement Activities Group


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Part I: Highlights of CPAG Joint Procurement Activ ities during 2013 Section A. Common Contracts Travel Agency and Visa Processing Services: The United Nations Office at Geneva (UNOG), in conjunction with the CPAG Members listed below, initiated in early 2013 the preparatory work to launch a Request for Proposal (RFP) for Travel Management Services and Visa Processing for the three-year period commencing 01 May 2014 with two possible extensions each of a further two years. The following UN organizations based in Geneva are participating in this exercise:

a. International Telecommunication Union (ITU) b. International Trade Centre (ITC) c. Joint United Nations Programme on HIV/AIDS (UNAIDS) d. United Nations Children's Fund (UNICEF) e. United Nations Office at Geneva (UNOG) f. United Nations High Commissioner for Refugees (UNHCR) g. World Health Organization (WHO) h. World Intellectual Property Organization (WIPO) i. World Meteorological Organization (WMO)

Although the United Nations System follows similar principles, each UN Organization has an individual travel policy and administers its travel budget independently. Travel-related procedures as well as supporting information systems are also specific to each organization. The overall gross air and rail ticket spend of UN Organizations in Geneva is approximately 90 Million Swiss Francs (CHF). Top 10 routes represented about 13% of the overall air travel spend. More than 50% of all travels originated from other places than Geneva and around half of the travellers were non-staff Members. Approximately 1/3 of the air travel amount was issued against UN corporate fares jointly negotiated by UN Organizations in Geneva with major air carriers or alliances. During 2013, travel agent and visa services were delivered by 85 UN dedicated Staff (including travel counsellors, management and support functions) located in 11 on-site implants and 1 offsite location (back office support). In addition to the Geneva based implants, two (2) “UN dedicated travel offices” in New York and Bangkok, staffed with 6 travel counsellors, provided travel services for travels originating from North America and selected markets in Asia. In 2013, more than 95% of all air tickets are issued by Geneva, New York and Bangkok offices and less than 5% by local Travel Agents’ partners. Further to the above referenced common procurement exercise, a contract was awarded to CARLSON WAGONLIT TRAVEL for the provision of Travel Management and Visa Processing Services for three (3) years from 1 May 2014 to 31 March 2017 with possible extensions of two (2) additional periods of two (2) years each from 1 April 2017 to 31 March 2021 in accordance with Financial Rule 105.15 (b) "qualified proposer whose


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proposal, all factors considered, is the most responsive to the requirements set forth in the solicitation documents". Airline Negotiations: 12 Members (ILO, ITC, ITU, UNICEF, UNHCR, UNOG, UNAIDS, WIPO, UNEP, WHO, WMO, WTO, Gavi Alliance and the Global Fund) are part of the Joint Airline Negotiations serviced by the Travel Management Companies. Carriers continue to conduct Airline Joint Ventures (AJV) in a highly competitive market. Airlines around the world have been finding ways to work with one another via joint ventures and alliances for their mutual benefit and to ensure their long-term viability. The International Organizations in Geneva (IOGs) joint airline negotiations presently include two separate circles: 1. Circle I travel from/to Geneva purchased by IOGs 2. Circle II travel from abroad to abroad purchased by IOGs Over the last three years, the IOGs have successfully promoted Circle II which became a key driver for the consolidation of volumes previously handled at the local market level. Currently, 12 carriers offer Circle II corporate rates which cover 50 % of IOG traffic volume. New proposals and/or revisions are carefully analysed and compared, namely:

a. Consistency of the proposed fare compared to the existing contract; b. Review of offered booking classes and discounts granted including Circle I and Circle II; c. Restrictions in terms of penalty charges in case of cancellations, changes or re-routing; d. Combination possibilities for creative ticketing or interlining with other carriers; e. Feeder flight conditions; f. Ticketing deadline waivers and/or other add-value such as flexibility and additional excess baggage allowance; g. Spot checks of the fares & conditions loaded in the Global Distribution System (GDS); h. Review of the airlines agreement clauses.

A "benchmark" (most competitive fare offered) per destination is provided in order to allow the carriers to adjust the corporate rate accordingly. The main challenges are to keep airfare increases to a strict minimum and avoid unnecessary restrictions. Compared to 2012, the overall traffic volume increased by 4.7% in 2013 while over the same period the number of tickets increased by 11.41 %. However, the net average ticket price decreased by -5.7%. The Estimated Cost Avoidance achieved in 2013 through joint airline negotiations, creative/local ticketing and travel agent fares were CHF 16'905'367.


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Furthermore, the airline negotiations team has achieved the following results:

i. Renewed agreements with: Sky Team (Air France, Delta, KLM, Alitalia), British Airways & Iberia, Emirates, Malaysia Airlines, Qatar Airways, Egypt Air, Ukraine, Jet Airways;

ii. Extended agreements and/or fares with: Star Alliance partners (Lufthansa, SAS.

Austrian, United, Air Canada, All Nippon, LOT, Thai Int'l, Singapore Airlines Swiss, South African, SN Brussels, Turkish Airlines, TAM, TAP) Darwin, Finnair, Egypt Air, Singapore Airlines, Ethiopian Airlines

iii. Concluded new agreement with: Korean Air, Air China (finalized in 2014);

iv. Held meetings with: Star Alliance partners Swiss / Lufthansa representing all

other Star Carriers (Air Canada, SAS, Austrian, United, Air Canada, All Nippon, LOT, Thai Int'l, South African, SN Brussels, Turkish Airlines, TAP), EasyJet, Emirates, Finnair, Malaysia Airlines, Darwin, Ethiopian Airlines Etihad, Qatar, Jet Airways, Air China, British Airways/Iberia, Cathay Pacific, Egypt Air

Tables 1, 2 & 3 below present the 2013 Estimated Cost Avoidance (ECA) for Travel and Airline negotiations.

Table 1: 2013 Estimated Cost Avoidance for Corporate Fares

Organisation ECA achieved through

corporate fares (in CHF)

GAVI ALLIANCE 2'271’905

UNAIDS 1'505’903

IBE-UNESCO 9’291

ITC 667’448

ITU 1'556’244

UNHCR 1'787’184

UNICEF 252’358

UNOG 1'616’776

Global Fund -

WTO -

ILO -

WHO 5'207’595

WIPO 1'283’644

WMO 746’92

Total CHF 16'905'367


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Table 2: Total 2013 ECA through corporate fares negotiations

Air Net Ticket Amount- All fares CHF 85'910'958

Air Net Ticket Amount- Corporate Fares Only CHF 30'505'209

Corporate Fares / Air Net Ticket Amount 36 %

ECA Achieved Through Corporate fares CHF 16'905'367

Total ECA achieved in 2013* CHF 16'905'367

ECA Achieved Through Corporate fares / Total savings Achieved

100 %

* The total 2013 ECA includes: Corporate IOG fares, Amex Fares, saving achieved through creative ticketing and low cost carriers usage. * The 2013 ECAs does not include WTO, ILO and Global Fund which were serviced by American Express. * These figures include UNAIDS ECAs.

Table 3: Projected 2013 ECA for Travel Agency and Airline negotiations

Organisation Projected 2013 ECA

(in CHF) Actual 2013 ECA

(in CHF)

Net Air Ticket purchases 77'985'479 85'910'958

Total ECA 16'552'042 16'905'367

Mail Services: Contracts for the dispatch of Swiss and International Mail and International Registered Mail were awarded to Swiss International Post with an effective date of 1 June 2009 for a five-year period ending on 31 May 2014. CPAG Members that benefit from this contract include UNESCO-IBE, ITC, ITU, UNHCR, WIPO, UNICEF, UNOG (Chair), WHO, and WMO. WIPO’s business with Swiss Post International only concerns international registered mail. The ECA for the Swiss and International Mail Services provides CPAG Members with a cost avoidance of approximately 30 % on the basic standard mail tariffs; UNOG, WHO and IOM achieved an annual Estimated Cost Avoidance of CHF 763’965 in 2013.

Table 4. 2013 ECA for Swiss and International Mail Services

Members* 2013 ECA (in CHF)

UNOG CHF 346'940

IOM CHF 36'135

ITU CHF 119’795

WHO CHF 253'923

WIPO CHF 1’936

UNICEF CHF 5’236

Total CHF 763'965

*The remaining Members did not provide their ECAs


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It should be highlighted that there was a decrease of almost 11 % in volume of Mail dispatched in 2013 compared to 2012. This trend is expected to continue in light of different initiatives within the UN to reduce paper consumption. Courier Services: A contract for Courier Services was awarded to TNT Swiss International as of 1 June 2009 for a four-year period ending on 31 May 2014. The CPAG Members that participated in this project are WIPO*, UNESCO-IBE, ITC, ITU, UNHCR, UNOG (Chair), WHO, and WMO. The ECA for the Courier Services achieved by the participating CPAG Members is approximately 74 % of the standard tariffs. In 2013, UNOG and ITU achieved an Estimated Cost Avoidance of approximately CHF 1'276’985 .

Table 5. 2013 ECA for Courier Services

Members** 2013 ECA (in CHF)

UNOG CHF 1'167'943

ITU CHF 7'218

WHO CHF 101’824

Total CHF 1'276'985

*WIPO has not used this contract in 2013. **The remaining Members did not provide their ECAs.

Diplomatic Pouch Services: Further to an RFP launched by UNOG, the contract for the provision of Diplomatic Pouch Services was awarded to JETIVIA SA for a five (5) year period from 1 May 2011. UNOG services all Geneva-based International Organizations and Agencies for Diplomatic Pouch Services to sixty (60) United Nations Offices around the world. The CPAG Members utilizing this service are : ILO, ITC, ITU, UNESCO-BIE, UNICEF, UNHCR,IOM, UNOG, WHO, WMO, WTO and Global Fund. In addition, the following UN organizations are also serviced as Geneva is a transhipment platform for the entire UN system: UNECA, ESCAP, ESCWA, FAO, IAEA, UNISDR, OCHA, OHCHR, UNCTAD, UNDP, UNEP, UNFCC, UNFPA, UNIDO, UNIFEM, UNITAR, UNOV, UNOPS, UNPA, UNRISD, UNV, UNRWA, and WFP. Diplomatic Pouch Services are concentrated at UNOG premises in order to reduce administrative and logistical costs and improve the efficiency and effectiveness of inter-agency collaboration.


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In 2013, the CPAG Members achieved an ECA of approximately 34 % representing CHF 458'716.

Table 6. 2013 ECA for Diplomatic Pouch Services

Members % ECA (in CHF) ILO/BIT 3.76 CHF 17'842 IOM/OIM 3.35 CHF 15'896 ITC 0.54 CHF 2'562 ITU/UIT 0.64 CHF 3'037 OMC 0.04 CHF 1'898 UNESCO 0.14 CHF 4'745 UNESCO/BIE 0.05 CHF 2'372 UNHCR 31.69 CHF 145'580 UNICEF 6.36 CHF 30'180 UNOG 33.86 CHF 154'562 WHO/OMS 19.5 CHF 92'540 WMO/OMM 0.04 CHF 1'898 Total CHF 458'716

Electricity: A contract for the supply of Electricity was awarded to ‘Services Industriels de Genève’ (SIG) further to the joint tender project comprising UNOG (lead agency), WHO, ILO, WIPO, ITU, WTO, UNHCR, WMO, IOM, ITC, and UNESCO-IBE. Gavi Alliance is also benefiting from the same terms and conditions of this contract. CPAG Members established a separate contract with the SIG pursuant to their own General Terms and Conditions for a three-year period effective 1 January 2010 to 31 December 2012. In 2011, CPAG Members made the decision to extend the contract for the period 2013 and 2014 as the terms and conditions for the extension period were better than those applicable to the existing contract (8.66 Kw/h instead of 9.72 Kw/h). The subsequent decision to extend the contract for Electricity Supply resulted from a consensus that SIG was able to respond to the specific energy (include “greening”) requirements of CPAG Members. It should be noted that the International Committee of the Red Cross (ICRC) which is in the same geographical electricity grid, is benefiting from the same rates offered by the contractor to the CPAG Members. In May 2013, SIG approached the Members and proposed to issue a joint contract for the provision of Gas and an extension of Electricity Contract for the period 2015-2016. The Members did not accept the proposal as these contracts are governed by two different procurement rules. The Members decided to launch a common tender for the provision of Electricity led by ITC, ITU and WIPO to have a contract in place by 01 January 2015. Table 7 below provides the ECA achieved by CPAG Members for Electricity which is approximately CHF 420’961.


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Table 7. CPAG 2013 ECA for Electricity

Members Type of Energy ECA in CHF

UNESCO-IBE Vitale Bleu 773.58 ILO Offre Découverte 74’561.41 ITC Vitale Bleu 6’047.09 GAVI ALLIANCE Offre Découverte 5’492.01 UNHCR Offre Illusion 14’740.91 UNOG Vitale Bleu 103’680.34 IOM Vitale Bleu 8,000 WMO Vitale Bleu 13’561.55 WIPO Offre Illusion 53’320.00 WHO Vitale Bleu 69’080.43 WTO Offre Découverte 26’020.35 THE GLOBAL FUND Vitale Bleu 6,977.41 UNICEF Vitale Bleu 5,237.88 ITU Vitale Bleu 33’468.74

Total CHF 420’961 Office Supplies: The project for Office Supplies was led by ITC in cooperation with ILO and the tender was issued on 9 September 2009. Upon completion of the RFP evaluation procedure, the participating entities ITC (Chair), ILO, UNOG, UNHCR, ITU, WMO, WTO, IOM and UNESCO-IBE awarded separate contracts to Office Depot Business Solutions for a 5 year period from 15 July 2010 to 14 July 2015.

From 1 January to 31 December 2013, the CPAG Members achieved an ECA of almost 43 % of the annual value of purchases from Office Depot Business Solutions representing CHF 208’435 . Table 8 below outlines ECAs for CPAG Members in 2013.

Table 8. Estimated Cost Avoidance for Office Supplies (2013)

Members* 2013 ECA

ILO CHF 28’467.66

UNOG CHF 167’656.55

ITU CHF 9’682

UNESCO-IBE CHF 2’630

Total CHF 208’435


During the CPAG fourth 2013 Quarterly Meeting, ITC, as lead agency for this project, informed the Members that it had conducted a client satisfaction survey which clearly indicated high level of client satisfaction among ITC users.


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On the basis of the positive results from both the benchmarking exercise and the client satisfaction survey, ITC decided to extend its contract with Office Depot for Office Supplies for 2014. UNOG’s Contract with Office Depot will expire in July 2015.

In addition to the above, it should be noted that on the 10 most purchased articles under this contract, CPAG Members who are using this contract usually pay 30% less than purchasing from Office Depot Suisse.

Paper Supply: Further to a joint project comprising UNOG (Chair), ILO, ITC, ITU, WMO, WHO, UNHCR, WIPO and UNICEF, Members concluded separate contracts for Paper Supply. Due to specific technical requirements, UNOG concluded a contract with three different Vendors: INAPA Suisse SA, ANTALIS SA and FISHER Papier SA for the period from 29 October 2010 to 28 October 2015.

UNOG,WHO, ITU and Global Fund are benefiting from the same terms and conditions of the contract with INAPA Suisse SA.

In 2013, UNOG, ITU and WHO achieved an estimated cost avoidance of approximately CHF 32'124.

Table 9. Estimated Cost Avoidance for Paper (2013)


UNOG CHF 1'751

ITU CHF 2'069

WHO CHF 28'304

Total CHF 32'124

*The remaining Members did not provide their ECAs Laptop Computers: further to a joint bidding exercise conducted by UNOG, ITU and WIPO, the contract with respect to the provision of Laptop computers and accessories for four models - Light, Standard, Mobile and Tablet - was awarded in September 2010 to Dell Computer SA for an initial period of three years with the option to renew up to a total of a five year contract period (until 2015). UNOG, WMO, ITU, ITC, WIPO and Gavi Alliance are benefiting from this contract. In 2013, CPAG Members achieved an Estimated Cost avoidance of approximately CHF 1’571’631. Table 10 below outlines ECAs for the relevant CPAG Members in 2013.

Table 10. Estimated Cost Avoidance for Laptop Computers (2013)


UNOG CHF 1’385’333

UNESCO CHF 915

ITU CHF 135'450

WIPO CHF 49’933

Total CHF 1’571’631



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Desktop Computers: A new contract was awarded in April 2011 for a total period of five (5) years to Dan Office SA for the provision of HP Office Computers, related accessories and warranties. The Members benefiting from this contract are UNOG, UNESCO-IBE, ITC and WMO. In 2013, UNOG and UNESCO, WIPO achieved an Estimated Cost Avoidance of approximately CHF 1'753'587.

Table 11. Estimated Cost Avoidance for Desktop Computers (2013)


UNOG CHF 1'580'773

UNESCO CHF 8'956

WIPO CHF 163'858

Total CHF 1'753'587

*The remaining Members did not provide their ECAs Toner and Inkjet Cartridges: The contract for the provision of Toner and Inkjet cartridges was awarded to ARP Suisse SA up to March 2015. UNOG (chair), UNHCR, ITU, ITC, and ILO benefit from this contract. In 2013, UNOG, IOM and ITU achieved an estimated cost avoidance of approximately CHF 447’540.

Table 12. Estimated Cost Avoidance for Toner and Inkjet Cartridges (2013)


UNOG CHF 388'888

IOM CHF 7’250

ITU CHF 51'402

Total CHF 447’540

*The remaining Members did not provide their ECAs Photocopier Services: Further to an RFP launched by UNOG on behalf of CPAG Members. A new Contract has been awarded to SHARP Electronics (Schweiz) AG for the period from 1 July 2012 to 30 June 2015 with possible extensions for two additional years. The CPAG Members, namely, UNOG (Chair), WIPO, UNICEF, WMO, UNESCO-IBE and ILO have benefited from this contract since 1 October 2002. UNOG, ILO and UNESCO achieved an ECA of approximately CHF 1'338'632.


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Table 13. Estimated Cost Avoidance for Photocopier Services (2013)


UNOG CHF 698’420

ILO CHF 25’532

UNESCO-IBE CHF 6’314

WIPO CHF 100’863

UNICEF CHF 277’713

Total CHF 1’338’632


Various types of IT equipment: Further to an ITB launched by UNOG on behalf of CPAG Members, a contract was awarded to ARP SUISSE SA for the period 1 April 2012 to 30 June 2015 for the provision of various types of IT equipment. UNICEF and IOM are benefiting from the terms and conditions of this contract.

In 2013, UNOG, UNICEF and IOM achieved an estimated costs avoidance of approximately 28 % representing CHF 86’562.

Table 14. Estimated Cost Avoidance for Various types of IT equipment (2013)


UNOG CHF 69'872

IOM CHF 9'240

UNICEF CHF 7’450

Total CHF 86’562


Access Control and Fire Detection: The CPAG Members, namely WHO, UNICEF, ITC, IOM and ITU benefit from the same terms and conditions of the contract concluded by UNOG with Siemens Suisse SA for the period from 1 April 2007 until 31 March 2017. Since 2007, CPAG Members have benefited from an estimated discount of 10 % compared to the applicable prices for other clients. In 2013, UNOG, UNICEF, ITU and IOM achieved an ECA of CHF 29’372.


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Table 15. Estimated Cost Avoidance for Access Control and Fire Detection (2013)


UNOG CHF 25'361

ITU CHF 2'107

UNICEF CHF 1'904

Total CHF 29’372

*The remaining Members did not provide their ECAs Novell licensing Agreement: UNHCR, UNOG, WIPO and WMO are benefiting from the same contract for the provision of Novell licensing Agreement with Novell. The contract was valid until 31 December 2013 and has subsequently been extended until 31 Dec 2015. During 2013, CPAG Members namely UNOG and WIPO achieved an ECA of CHF 225'391.

Table 16. Estimated Cost Avoidance for Novell licensing Agreement (2013)


UNOG CHF 93'257

WIPO CHF 132'134

Total CHF 225’391

*The remaining Members did not provide their ECAs Field Vehicles: UNOG, UNHCR and WHO are using the same terms and conditions of the contract with Toyota Gibraltar Stockholding LTD for the provision of a large number of models of Toyota vehicles. This contract was extended for a two-year period from 1 January 2010 to 31 December 2011 and subsequently further extended for the period from 01 June 2012 until 31 December 2013. TGS agreed to apply the following additional discounts on the basic vehicle price on single orders for deliveries to the same destinations as follows:

a. Order of 1 – 9 unites : 2 % discount; b. Order of 10- 19 units: 2.5 % discount; c. Order of 20 – 29 unites: 3 % discount; d. Order of 30 – 39 unites: 3.5 % discount; e. Order of 40+ unites: 4 % discount.

Effective 1 March 2013, TGS agreed to apply the following discounts on the basic vehicle price in single orders for deliveries to the same destinations as follows:

a. Order of 0 – 19 unites: 3 % discount; b. Order of 20 – 39 unites: 3.5 % discount; c. Order of 40+ unites: 4 % discount;


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Document Management and Digital Printing Services: The contract for these services was extended with OCE (Schweiz) AG for a three year period from 1 January 2010 to 30 September 2013. UNOG, ITC, and IOM benefited from a 50 % discount on rental of machines and production of copies. UNOG achieved an estimated cost avoidance of approximately CHF 228’286. ITC and IOM did not provide their 2013 estimated cost avoidance. Library Serials: Further to a common tender launched by the Members, namely: UNOG (Project Lead), ITC, ITU, UNESCO-IBE, and WIPO, with WHO and WTO as observers in 2011, EBSCO was awarded a contract, renewable on an annual basis (up to 4 years). The objective was to put in place a contract for the acquisition of recurrent subscriptions of 453 serials from around the world. In 2013, CPAG Members achieved an estimated costs avoidance of approximately CHF 22’868.

Table 17. 2013 ECA for Library Serials

Organisations 2013 ECA (in CHF)

UNOG CHF 3’986

ILO CHF 14’175

UNESCO-IBE CHF 356

WIPO CHF 4’351

Total CHF 22’868

*The remaining Members did not provide their ECAs Heating Oil: Further to a joint project with the participation of CPAG Members, including: UNOG (Project Lead), ITC, WHO, WTO and UNHCR as Observer, the contract for the provision of Heating Oil was awarded to Crivelli & Trabold SA for a five-year contract period from 18 July 2011 through 17 July 2016. The Estimated Cost Avoidance (ECA) is calculated on the basis of the comparison of the lowest price offered by the contractor versus the average of the prices proposed by the other vendors. The projection for the 5 year period is CHF 821’800 for CPAG Members on the basis of an average fuel price of SFr 81.15 per 100 litres. Table 18 below summarizes details of CPAG ECAs.

Table 18. ECA for Heating Oil

Members* 2013 ECA in CHF

UNOG CHF 17'628

WHO CHF 126’558

Total CHF 144'186 *The remaining Members did not provide their ECAs

Language Training Provider Further to a joint tender for Language Training Services which was launched by ILO, ITU, UNICEF, WHO and WIPO, the Participating


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Members awarded the contract to BELL SA for the provision of Language Training Services for the period from 1 June 2011 to 30 May 2014. Table 19 below summarizes details of CPAG ECAs.

Table 19. 2013 ECA for Language Training Services

Organisations 2013 ECA (in CHF)

WIPO CHF 46’553

ITU CHF 20'242

ILO CHF 18’900

Total CHF 85’695 *The remaining Members did not provide their ECAs

Mobile Phone Services: On 29 October 2012 , UNOG awarded a contract for the provision of Mobile Phone Services for an initial period of two (2) years with possible extensions up to a maximum contract period of (5) years to SUNRISE COMMUNICATIONS AG.

This award has allowed CPAG Members to enter into direct negotiations with Sunrise Communications AG in order to benefit from the same terms and conditions as per UNOG's Contract.

Due to their specific patterns and profiles, CPAG Members take advantage of the outcome of the UNOG’s Contract and approach Swisscom Suisse SA to review their terms and conditions and negotiate new rates, which have been substantively reduced for the overall market as a result of this solicitation.

The table 20 below summarizes the member's status regarding their Mobile Phone Services Contracts as well as their yearly Estimated Cost Avoidance during the contract period.

It should be noted that CPAG Members namely WIPO, UNICEF, and ITC started their contract with Swisscom in January 2014.

Table 20. UNOG ECA for Mobile Phone Services (in CHF)

Members * Previous

Contractor New Contractor Yearly ECA in

CHF

ILO Swisscom

Swisscom 125'964.61

UNOG Swisscom Sunrise 915'950.67

WHO Swisscom Swisscom 367'000.00

Total 1'408'915.28 *The remaining Members did not provide their ECAs


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Section B. Shared Contracts During the calendar year 2013, the Secretariat has managed a significant number of Members’ requests with respect to the provision of information, documents, lists of vendors, and contact information on various contracts such as:

1. Satellite Telecommunication equipment (VIZADA) 2. Mobile Phone Services (Sunrise) 3. Laptops Field Offices ( Advizing IT) 4. Premier Support Services and Consulting (Microsoft) 5. Lotus Notes (IBM) 6. Fixed Voice Telecommunication Services (Colt SA) 7. Microsoft Select Agreement (ComSoft) 8. Microsoft Consulting agreement (Microsoft) 9. Premium support Services (Microsoft) 10. HP Servers ( HP) 11. Rental of High Volume Digital Color Printer (Ricoh) 12. Temporary Operators (Adecco) 13. Mobilier du Bureaux (Round Office) 14. Services de Manutention (DGM Veron Grauer) 15. Mobilier du Bureau (NOS) 16. Dry Cleaning ( Baechler SA) 17. Access Control and Fire Detection 18. Travel and Medical Assistance. 19. Document Management and Digital Printing Services

Section C. Completed 2013 projects Travel Management and Visa Processing Services On 2 September 2013, the Headquarters Committee on Contracts approved the contract award to CARLSON WAGONLIT TRAVEL for the provision of Travel Management and Visa Processing Services for Three (3) years from 01 April 2014 to 31 March 2017 with possible extensions of two (2) additional periods of two (2) years each from 01 April 2017 to 31 March 2021. The decision was communicated to the participating CPAG Members and the draft contract agreed between UNOG and CWT was shared with the Members. Fixed Telecommunication Services UNOG awarded contracts for Fixed Voice Telecommunications Services for an initial period of two (2) years with possible extensions up to a maximum contract period of (5) years to the following vendors:

a) SUNRISE COMMUNICATIONS AG for the provision of Infrastructure and National Calls and 72% of International calls; and

b) COLT TECHNOLOGY SERVICES GMBH for the provision of 28% of

International calls.


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The terms and conditions of this contract were extended to CPAG Members namely ILO, WHO, and ITC. Gaz Naturel On 28 October 2013, UNOG awarded the contract for the provision of Natural Gaz to Services Indistruels de Geneve (SIG) for the period from 14 October 2013 to 13 October 2016 under monopoly provisions. UNOG, ILO, WIPO and WHO are benefiting from the same terms and conditions of this contract. Part II. Activities, Costs and Benefits for 2013

Section A. Meetings Held a. Management Board regular Meetings The 2013 Annual Meeting took place on 3rd July 2014 at the Palais des Nations. The discussions covered the Common Procurement activities conducted by the Members during 2013 and focused on the efforts deployed to further strengthen a common services approach among Geneva–Based International Organizations. b. Management Board Quarterly Meetings During 2013, the schedule of CPAG quarterly meetings was as follows:

o Thursday 08 April 2013 o Thursday 4 July 2013 o Thursday 18 September 2013 o Friday 5 December 2013

d. Individual Meetings The Secretariat continues to act as a conduit of information for ongoing CPAG projects and activities and any other query for information related to procurement activities of its Members. The CPAG Secretariat will continue to approach other Geneva-based International Organizations to brief them on the statutes and joint activities within CPAG in order to increase the potential procurement volume of locally represented UN Organizations and Agencies.

The CPAG Secretariat will also continue to follow-up on issues discussed and to meet with Members in order to strengthen relations and to enhance information flow.


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Section B. Operational Costs

According to Article 17 of the CPAG Statutes, every year each Member and Associate Member Organization shall pay to the Financial Resources Management Service of the United Nations Office at Geneva its share of the annual operating costs of the CPAG Secretariat, in accordance with the proportions fixed by the Management Board on the proposal of the CPAG Secretariat. These costs shall normally comprise expenditure on administrative costs and personnel salaries and are apportioned to Member Organizations on the basis of their relative staffing strengths as published yearly by the Chief Executives Board for Coordination (CEB).

Accordingly, the approved total cost in 2013 is USD 184'600. The common costs of the CPAG Secretariat for 2013 are composed of:

a. US $ 3’000 office expenses; b. 12 months of the annual standard salary cost of a P-3, USD 181'600 (Based

on data from Financial Resources Management service in April 2012).

Table 21. Proposed Cost Breakdown by Board Member for 2013

Members

Staff

Percent (%)

Provisional Share 2013 (US$)

UNESCO-IBE 15 0.14% 256 ILO 1161 10.72% 19'791 IOM 160 1.48% 2'727 ITC 255 2.35% 4'347 ITU 693 6.40% 11'813 GLOBAL FUND 600 5.54% 10'228 UNHCR 594 5.49% 10'126 UNICEF 276 2.55% 4'705 UNOG 3004 27.74% 51'209 WHO 1765 16.30% 30'088 WIPO 971 8.97% 16'552 GAVI ALLIANCE 150 1.39% 2'557 WMO 257 2.37% 4'381 UNAIDS 259 2.39% 4'415 WTO 669 6.18% 11'404 TOTAL 10'829 100% 184'600

* As reported by CEB (latest available data as at December 2011). ** Based on the Standard Salary Cost 2012.


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Part III. Proposed Activities & Costs for 2014

Section A. Ongoing procurement and harmonization projects International and Express Mail: This common RFP is launched by CPAG Members namely UNESCO, ILO (Observer), UNOG, WHO, UNHCR, IOM, WMO, WIPO, UNICEF, ITU. The RFP documentation was sent out to Vendors on 10 February 2014. The requests for clarifications were received from Vendors on 25 February 2014 and proposals were received from the 9 vendors listed below.

1. LA POSTE SUISSE ; 2. DHL EXPRESS (SHWEIZ) AG ; 3. FEDERAL EXPRESS EUROPE INC; 4. TNT SWISS POST AG; 5. DEUTSCHE POST GLOBAL MAIL (SWI) AG; 6. UPS UNITED PARCEL SERVICE SUISSE; 7. ARAMEX; 8. 3G WORLDWIDE MAIL SA; 9. BPOST.

An award is expected by the end of September 2014. Electricity: This tender is led by WIPO, ITU and ITC on behalf of CPAG Members. The lead agencies informed the Members that 3 offers for electricity from eligible vendors were received in response to the RFP. Courier services: On behalf of CPAG Members namely UNESCO, ILO (Observer), WHO, UNHCR, IOM, WMO, WIPO, UNICEF and ITU, UNOG’s Committee on Contracts recommended to the Director of the Division of Administration to authorize to UNOG to enter into direct negotiations for the provision of Postal Services of Local deliveries in Switzerland with la Poste Suisse for an initial period of three years with possible extensions up to a maximum contract period of 5 years from 1 January 2015 to 31 December 2019. On 13 May 2014, UNOG addressed, on behalf of the participating CPAG Members, an offer to Swiss Post on the basis of common requirements. Section B. Proposed activities Office Supplies : As mentioned previously, ITC, as lead agency for this project, informed the Members that it had conducted a client satisfaction survey which clearly indicated high level of client satisfaction among ITC users. On the basis of the positive results from both the benchmarking exercise and the client satisfaction survey, ITC decided to extend its contract with Office Depot for Office Supplies for 2014.


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The preparatory work as well as the composition of the working groups to launch collaborative procurement tenders for the following projects is to be initiated by latest mid-2014.

Microsoft Enterprise Agreement: During the CPAG Fourth 2013 quarterly meeting, The Secretariat informed the Members that a meeting was held on 29 October 2013, at the International Telecommunication Union (ITU), with the Software Advisor of the United Nations Headquarters, namely SHI International Corp, aimed at exchanging information on the status of enrollments under MBA U9254711 within the UN family, in particular within the Geneva based UN and International Organizations.

The Members UNOG, WHO, ILO, ITU, ITC, IOM, Global Fund and GAVI, having the enrollments due for renewal between 31 July 2013 and 31 December 2014, recommended that the Procurement Network of the High Level Committee Management requests that the United Nations Procurement Division (UNPD) take the lead in negotiating the terms and conditions at Business and Enterprise Agreement level with Microsoft for all UN Agencies.

Captioning services ITU is planning to launch a tender for captioning services in July 2014. At present, ITU is consolidating the in-house demand and the specifications, e.g. which languages are required. The Members were requested to express their interest as to whether they wish to participate in this collaborative procurement exercise. UNOG expressed its interest to join this collaborative procurement exercise with ITU. CIPS Procurement Training: UNOG will host 2014 trainings which are anticipated as follows:

CIPS Level 3……………………………………………………..25 participants Contract & Supply Relationships Management………………….17 participants

LCC Training : CPAG Members would also like to organise an LCC training in Geneva through UNOG. ITC is very interested in the LCC training and offered to share the costs with UNOG. ILO is also interested to participate in this training. Collaborative Procurement in Facility Management Area: CPAG Members are still discussing the effort being made by Facilities Managers of Geneva based Agencies to investigate the benefits achievable by combining services and consultancies. The intent is to determine Procurement Strategies and pros and cons of combining services and what are the areas of services and products that may be consolidated into common contracts. Section C. Proposed Meetings 1. Annual Meeting: 1st Quarter of 2015 2. Quarterly Meetings: Proposed schedule for 2014: 05 March, 19 June,

25 September, and 11 December. 3. Other Meetings: On-going between the Secretariat and Working Groups of new and

ongoing projects and/or requirements.


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Section D. Operating Costs Based on the approved approach outlined in Part II above, the operational costs attributed to CPAG Members have been calculated accordingly (Salary P3= Total Net Salary + Common Staff Costs + Fixed Amount for Office Expense = Total). Table 16 below provides the estimated cost breakdown by Board Member for 2014.

a. US $ 3’000 office expenses, b. 12 months of the annual standard salary cost of a P-3 USD 182'600

Table 22. Proposed Cost Breakdown by Board Member for 2014

Members Staff Percent (%)

Provisional Share 2014 (US$)

UNESCO-IBE 14 0.13% 241

ILO 1153 10.71% 19'883

IOM 160 1.49% 2'759

ITC 258 2.40% 4'449

ITU 697 6.48% 12'019

GLOBAL FUND 600 5.57% 10'347

UNHCR 588 5.46% 10'140

UNICEF 272 2.53% 4'690

UNOG 3048 28.32% 52'561

WHO 1588 14.75% 27'384

WIPO 1001 9.30% 17'262

GAVI ALLIANCE 150 1.39% 2'587

WMO 262 2.43% 4'518

UNAIDS 259 2.41% 4'466

WTO 669 6.22% 11'536

UNDP 44 0.41% 759

TOTAL 10'763 100% 185'600

* As reported by CEB (latest available data as at December 2012). ** Based on the Standard Salary Cost 2013.

The Members unanimously approved the Proposed Cost Breakdown for 2014. Section E. New CPAG Membership in 2014 The Secretariat informed the Members that UNDP Geneva had approached UNOG and the Secretariat to discuss collaborative procurement with Geneva-based Organisations and had requested the Membership in CPAG . Further to the receipt of the UNDP request, the Secretariat provided them with the CPAG Statutes and invited them to attend the CPAG 2013 Annual Session.


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As per the Common Procurement Activities Group Statutes, the Management Board was invited to approve the participation of UNDP as a new CPAG Member, which was unanimously approved effective 01 January 2014. Section F. Nomination of the Chairmanship In accordance with Article 7 (Chapter IV) of the Statutes of the Common Procurement Activities Group, the Chairmanship of the Management Board shall be held for one calendar year by the representative of each Member organization in rotation. Table 23 presents the 10-year history of the Chairmanship by Organization and the proposed rotation schedule until 2018.

Table 23. Chairmanship history and rotation schedule until 2018

Organization Chair Organization Vice

Chair Year

ITU UNOG 2009

UNOG WHO 2010

ILO WHO 2011

WHO IBE-UNESCO 2012

WMO IBE-UNESCO* 2013

UNICEF GLOBAL FUND 2014

GLOBAL FUND Gavi Alliance 2015

Gavi Allinace WIPO 2016

WIPO ITU 2017

ITU UNOG 2018

* IBE-UNESCO declined to hold the chairmanship of the Management Board in 2013 and was replaced by WMO. With a view to following the rotation arrangement established in Article 7 of the Statutes, the CPAG Secretariat proposed that the representative of UNICEF be appointed as Chair and the representative of GLOBAL FUND as Vice-Chair for 2014 which was approved by the Management Board.

Secretary of the Common Procurement Activities Group

Stephen Farrell

common procurement activities grouphttpassets...cpag members that participated in this project are...

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