Guidance for Finnish companies on UN procurement

The United Nations (UN) purchases goods and services worth USD 25–30 billion every year, offering companies a pathway to global markets. Cooperation with the UN provides Finnish businesses and organisations with excellent opportunities to diversify their customer base while gaining insight into emerging markets. The Ministry for Foreign Affairs and its diplomatic and consular missions abroad monitor procurement by UN organisations and promote the participation of Finnish businesses in cooperation with the Team Finland network.

The UN is a reliable partner that can offer financial stability to suppliers of goods and services. It values long-term cooperation with companies of all sizes. Many UN organisations actively encourage Finnish companies with competitive innovations, for example in clean energy, health, water and digital solutions, to contact them directly.

Presenting an innovation may open the door to a procurement opportunity. The Ministry for Foreign Affairs and its missions abroad can support companies in establishing contacts so that innovations can be introduced at an early stage of a potential procurement. If a company needs its first international references, it can apply for Finnpartnership funding for pilot projects with an ODA‑eligible international organisation.

To succeed in this market, a company must have sound finances. Experience in exports, especially in emerging markets, is a great advantage. Companies also need a dedicated resource for UN procurement that can focus on this work. Credibility with the UN is further enhanced if a company can offer turnkey solutions, provide niche products or services with limited competition, or already has strong local partnerships in an emerging market.

UN as a customer

The United Nations is a network that includes around one hundred organisations, agencies, programmes and funds. The UN seeks to ensure transparency and impartiality in all its activities. This is also reflected in its procurement processes, which are carried out through open, competitive procurement processes published on the UN's procurement portal, the United Nations Global Marketplace (UNGM).

Each UN organisation has its own procurement practices, which leads to different requirements for goods and services. These differences stem from the organisations’ individual objectives and operating principles. Procurement may be conducted through headquarters, country offices or service centres. However, procurement always aims to ensure timely access to the required resources, guided by the following principles:

• Best value for money: identifying the most economically advantageous offers.
• Accountability, integrity and transparency: ensuring ethical and transparent operations.
• Fair and effective competition: maintaining fair and competitive procurement processes.
• Best interests of UN organisations: prioritising the needs and objectives of UN organisations.

Selling to the UN can sometimes feel challenging, but it offers attractive business opportunities that are well worth exploring. The UN organises procurement by category and uses UNSPSC codes (United Nations Standard Products and Services Code) to classify goods and services. These codes provide a uniform classification system that helps the UN manage procurement efficiently and accurately. You can use the categories below to determine whether there may be demand for your company’s products and services.

UN procurement portal – United Nations Global Marketplace (UNGM)

Transparency and impartial treatment are core principles of UN procurement. In practice, this means that the UN publishes almost all solicitations (the UN term for procurement opportunities) on the UNGM portal. The UN organisations with the highest procurement volumes, numbering more than 30, use UNGM as their primary channel for publishing open solicitations. Before companies can supply goods or services to the UN, they must register on the portal. UN staff use UNGM to identify potential suppliers, making visibility on the portal essential. Companies that sell to the UN, or are interested in doing so, should regularly check the UNGM portal for new procurement opportunities and awarded contracts.

Examining awarded contracts is useful, as they provide information on contract values and winning bidders. This information can help you contact the relevant procurement officer and ask for more details. It will also help you identify subcontracting opportunities, particularly if direct sales to the UN are challenging.

Many UN organisations also use electronic procurement systems (eProcurement portals), either independently or integrated with UNGM. These systems make the procurement process more efficient by digitally managing the stages of the UN’s various procurement methods. They support procedures for the formal opening and verification of bids submitted by suppliers, and they are used when comparing bids and when decisions on contract awards are made.

In addition to procurement opportunities and awarded contracts, UNGM contains a wealth of useful information. Below are two key links worth exploring:

• Knowledge Centre (ungm.org) provides market information, procurement tools and e‑learning.
• UNGM Help Center provides guidance on registration and procurement processes. 

Cooperation with the UN requires knowledge of procurement methods

The UN operates in demanding environments worldwide, while offering companies access to global markets. To succeed, suppliers must understand UN procurement methods. Below are a few key points:  

1. UN procurement methods

In UN procurement, the term ‘solicitation’ refers to the different procurement methods used by UN organisations to communicate their requirements. The choice of method typically depends on factors such as the value of the procurement, its urgency and the required delivery timeframe. These procurement methods involve inviting potential suppliers to submit bids, price quotations or proposals. Even if a supplier is unable to take part in a specific procurement opportunity, it is important to respond and indicate whether or not they will participate. This demonstrates professionalism and helps the UN organisation move forward with the procurement process efficiently. The UN’s main procurement methods are: 

Request for Expression of Interest (REOI)

Suppliers are invited to provide information about their products, services, capacity and qualifications. This allows the UN to identify the most suitable potential suppliers for a specific requirement.

Request for Quotation (RFQ)

A relatively informal procurement method used for goods and services that are readily available on the market and of lower value, for example below USD 30,000.

Invitation to Bid (ITB)

A formal procurement method used for clearly defined goods and services. Contracts are awarded to the lowest-priced bid that meets requirements, typically for procurements valued above USD 30,000.

Request for Proposal (RFP)

A procurement method where both price and the proposed technical solution are taken into account when awarding the contract, typically for procurements valued above USD 30,000.

Long-Term Agreement (LTA) 

A longer-term contract, usually lasting two to five years, established on the basis of an ITB or RFP. During the contract period, new procurement opportunities are generally not published for the same product or service.

Direct Contracting

Direct contracting may be used in exceptional situations, such as humanitarian emergencies.

2. Collaborative procurement and piggybacking

In collaborative procurement, several UN organisations join forces to achieve cost savings or improve services by reducing overlapping activities between organisations. This form of cooperation helps the UN harmonise and streamline its procurement processes.

An example of collaborative procurement is the cooperation between the UN Population Fund (UNFPA), the UN Children’s Fund (UNICEF) and the UN Refugee Agency (UNHCR). In response to the lack of globally standardised quality requirements for menstrual products, these organisations jointly developed shared quality standards.

When a supplier has a Long-Term Agreement (LTA) with one UN organisation, other UN organisations may also use the same agreement. This practice is known as piggybacking or UN‑to‑UN procurement. It allows organisations to benefit from an existing contract without launching a new procurement process. For suppliers, this increases visibility within the UN system and can make it easier to do business with additional UN organisations.

Both collaborative procurement and piggybacking aim to improve the efficiency of UN procurement. While piggybacking focuses on making use of existing contracts, collaborative procurement requires cooperation between organisations from the outset to achieve shared procurement objectives. 

Alternative contract types with the UN

• A supplier may enter into a fixed‑term, one‑off contract for the delivery of specific goods or services at an agreed price.
• A supplier may also enter into a long‑term framework agreement, which does not define exact quantities of goods or services. This type of agreement typically covers the needs of a single UN organisation over a defined period, usually two to five years.
• In addition, it is possible to establish a non‑commercial partnership with the UN, based on pro bono‑type cooperation.  

How the UN evaluates bids

• Acceptance of the UN’s payment terms and other contractual conditions
• Technical requirements
• Delivery terms and delivery schedule
• Compliance with international standards
• Submission of supporting documentation, including references where applicable
• Demonstrated production capacity and financial stability
• Price

Checklist for maximising your procurement opportunities

Participation in UN procurement can be rewarding but demanding. It is important to understand how UN organisations approach purchasing. The checklist below helps companies preparing to become suppliers build credibility and become reliable UN partners.

1. Register on the UN procurement portal (UNGM): Register free of charge on the UNGM portal and visit it regularly to review information and search for procurement opportunities.
2. Select UNSPSC codes: When registering, suppliers must choose the UN Standard Products and Services Codes (UNSPSC) that best match their products or services. These codes help UN staff find suppliers and allow companies to classify their offerings. Choosing the right codes is essential.
3. Allocate a full‑time resource: Selling to the UN is a full‑time task. Appoint a person within your organisation who is responsible for UN procurement and can focus on this work.
4. Develop your own strategy: Plan your approach carefully and define your objectives and the methods you will use to achieve them. 
5. Decide what you will sell: If your company offers a wide range of services or products, decide which specific product or service you want to offer to the UN.
6. Focus on selected UN organisations: Choose a small number of UN organisations to focus on and familiarise yourself thoroughly with their procurement processes.
7. Research, learn and build relationships: Learn about the UN and its procurement practices at a general level. Build relationships and actively promote your offering.
8. Understand UN procurement methods: Familiarise yourself with the procurement methods the UN uses to purchase goods and services. What do the abbreviations EOI (Expression of Interest), RFQ (Request for Quotation), ITB (Invitation to Bid), RFP (Request for Proposal) and LTA (Long‑Term Agreement) mean? Can your company participate in these processes, or how could it work towards securing an LTA?
9. Review contract awards: When studying open procurement opportunities, also review awarded contracts through UNGM. Have you considered the possibility of working as a subcontractor for a company that already supplies the UN?
10. Submit your bid on time: If you decide to take part in a procurement opportunity, submit your bid in the requested language and strictly by the deadline.
11. Provide complete information for solicitations: The documents requested in solicitations are structured questionnaires. Make sure to provide all requested information. UN procurement officers look for precise and complete responses.
12. Ask and learn if your bid is unsuccessful: If you did not win the contract, ask for feedback and inquire about the winning price. If the price is confidential, you may ask how your bid ranked (for example, second‑lowest or third‑lowest).
13. Be patient: The UN does not offer quick wins. Securing a first contract may take several years (typically two to five years), depending on the organisation. However, you cannot win contracts unless you participate and submit bids.
14. UNGM Tender Alert Service (TAS): Consider subscribing to the paid Tender Alert Service to receive up‑to‑date notifications about procurement opportunities related to your products and services.
15. Be proactive: Take initiative and always respond when the UN contacts you. Excessive modesty or hesitation will not move your business forward.
16. Learn about and engage with the UN Innovation Network.

Key points to consider in UN procurement

The following points are worth keeping in mind when engaging in UN procurement:

Length and complexity of processes: Procurement processes can be lengthy, while the time allowed to respond to solicitations is often short. The UN may extend a solicitation several times and change the specifications of the goods or services for various reasons. The more complex and demanding the procurement, the more likely such changes are. A procurement process may take anywhere from a few months to up to a year.

Frequent changes: Project complexity, the number of suppliers, the contract value and internal organisational procedures all affect timelines. Location and urgency may also influence the choice of procurement method.

Local partnerships: Goods and equipment are often procured together with installation and maintenance services, which typically requires a local partner in the country of operation.

Long-Term Agreements (LTA): Participating in individual procurement opportunities can sometimes be costly, which highlights the importance of long-term agreements when working with the UN.

Sustainable development and the SDGs: Emphasising sustainability can provide a competitive advantage. Suppliers for whom sustainability is part of their core strategy are well positioned. Cooperation between UN organisations on sustainability-related issues can also benefit a company’s wider business with other stakeholders and markets.

A dedicated resource for UN work: Good preparation, for example by appointing a dedicated staff member responsible for UN procurement, provides a strong advantage.  

Sustainability at the core of UN procurement

The United Nations Sustainable Development Goals (SDGs) are a set of 17 interconnected global goals that serve as a blueprint for achieving a better and more sustainable future for all by 2030. The goals were adopted by the UN General Assembly in 2015 and aim to ensure that no one is left behind.

The SDGs address a wide range of social, economic and environmental challenges, including ending poverty and hunger, securing health and wellbeing, promoting gender equality, ensuring access to clean water and sanitation, advancing renewable energy, fostering sustainable economic growth, combating climate change and promoting peace and justice.

Partnerships are a central element of achieving the SDGs. Goal 17, ‘Partnerships for the Goals’, highlights the need for effective cooperation across countries, sectors and industries to build a sustainable future.

UN procurement processes are designed to support sustainable development in all its dimensions. This means that procurement decisions consider environmental protection, social inclusion and economic development.

According to the UN, “Procurement is called sustainable when it integrates requirements, specifications and criteria that are compatible and in favour of the protection of the environment, of social progress and in support of economic development, namely by seeking resource efficiency, improving the quality of products and services and ultimately optimizing costs.” 

Sustainable procurement – cooperation within the UN

Many UN organisations are increasingly integrating sustainability into their procurement processes. According to the UN’s 2023 statistical report, the 30 UN organisations with the highest procurement volumes reported on their sustainable procurement practices.  (A total of 32 organisations participated in the survey.)

The UN Refugee Agency (UNHCR) is an example of a UN organisation that applies sustainable development principles by developing environmentally friendly product specifications. UNHCR has improved sustainability in its supply chain for relief items such as tents, blankets and sleeping mats. Through these efforts, the organisation has reduced carbon dioxide emissions by nearly 60 per cent by using around 200 recycled plastic bottles per thermal blanket.

When working with the UN, it is important to learn to speak the language of the SDGs. A key aspect is clearly explaining how a company’s or organisation’s offering contributes to sustainable development or delivers positive development impacts. When integrating the SDGs into a company’s strategy and discussing them with the UN, it is often more effective to focus on a small number of relevant goals at a time. It is also worth remembering that gradual changes to a company’s strategy on sustainability are sufficient. In this context, less can often be more.