Others may decide to aggregate traffic with other operators and thus gain leverage in their dealings with global providers.

To further improve its management, the Department of Peacekeeping Operations had issued policies to the missions on property write off and disposal action, receiving and inspection of equipment, receiving inter mission transfers in Galileo and items on loan to and from other entities.

As a result, contracts were awarded mostly to a restricted group of vendors.

Furthermore, information on the registration status of vendors recommended for contract awards is now supplied to the Headquarters Committee on Contracts to verify that established vendor registration procedures have been followed.

Finally, the Secretary General wishes to inform the Assembly that the United Nations is working with other organizations in the United Nations system to establish a common supplier database, whereby the participating organizations will share information on suppliers, including supplier performance evaluations.

(4)(b) The successful tender shall be that submitted by a supplier that has been determined to be fully qualified to undertake the contract, and whose tender is

In addition, twice a year, field missions are required to complete supplier evaluation forms designed to gauge vendors' compliance with contractual specifications.

In paragraph 95, the Board recommended that the Tribunal perform supplier evaluations of existing vendors prior to extending or renewing a contract with the same vendor.

Some agreements also have effects on franchising, sub contracting companies and suppliers in the supply chain.

In paragraph 87, the Board recommended that vendors be requested to provide evidence of the insurance coverage taken out, upon the signing of the contract, as stipulated in the contracts.

The members of IAPWG have agreed that the United Nations vendor code of conduct should not be confused with the United Nations General Conditions of Contract, a document that is an intrinsic part of all United Nations contracts and that requires strict compliance by suppliers.

Summary of conclusions on procurement and contract management

67. The reports led the Organization to suspend preliminarily three vendors for certain activities while the Organization provided the vendors with an opportunity to present their views on these activities.

In paragraph 540, the Board recommends that the Administration deal only with suppliers duly listed in the roster of vendors to protect the interests of the United Nations, and comply with the provisions of the United Nations Procurement Manual in regard to vendor selection.

In paragraph 88, the Board recommended that the Tribunal request from vendors with existing contracts proof of insurance coverage.

At this time, there are 10 vendors who regularly win short term charter contracts and 12 with long term aviation contracts.

The prior practice was for agencies to establish their own independent contracts for given commodities with vendors.

It will be communicated to all suppliers doing business with the Organization, although it will not be mandatory or of a contractual nature.

Rations contracts

In practically every case, the payment for the performance of a public contract in those countries was made in the form of a price paid by the governmental agency to the supplier or contractor.

It was clear from paragraph 93 that the requirement to ensure that suppliers from as wide a geographical base as possible were registered on the vendor roster was not being taken into account in awarding contracts.

(vi) Equipment Full cost of contractual agreement or firm order placed with the supplier prior to the end of the current year up to the amount provided in the current year s budget

The procedures for the selection and award of contracts should be refined and the vendor s register should be updated in a timely manner to ensure that only competent contractors are considered for UNRWA projects.

During that period, a number of vendors, and that dominant vendor, were able to benefit by filling the void of experience and knowledge within the United Nations concerning the planning, procurement and management of aviation contracts, including providing advice on the elements to be included in such contracts.

For instance, it promoted vertical partnerships with leading providers operators, as well as integration of supply chains.

Through competitive bidding, two suppliers were selected to supply Lysol.

A third aviation vendor was asked to respond to an allegation of filing a false claim of bias to assist another vendor improperly to obtain access to United Nations aviation contracts.

There was a co creation, a huge co creation, with vendors and suppliers.

84. Supply Officer Rations Contracts

One result of the policy has been a significant drop in the percentage of United Nations aviation contracts awarded to one vendor.

The Board recommended in its previous report that the Administration continue its efforts to ensure the proper custody, control and disposal of non expendable equipment as well as to rectify any deficiencies noted in that regard.

14. In the period 1991 1994, aviation vendors already engaged on United Nations aviation contracts provided the Organization with advice on aircraft types, costs and obligations that would suit the expanded needs of the United Nations and be attractive to vendors.

Vendors 7.4 7.0

Accordingly, the Secretary General believes that the most appropriate and practical way to increase the participation of vendors from developing countries and countries with economies in transition in the award of United Nations procurement is through their enrolment in the supplier roster.

Such supplier performance reports must be completed at appropriate intervals during as well as at the completion of the contract, and promptly returned to the Procurement Division.

Under the 1993 Model Law on Procurement of Goods and Construction, the notice of contract awards is given only to suppliers and contractors (article 35 (6)).

23. Because of the short duration of United Nations aviation contracts in 1992 1993, costs were usually above what could have been obtained if a longer tenure had been offered to the vendors.

In response to paragraph 48, UNRWA states that every procurement contract with suppliers contains a clause requiring them to attest that no official of the Agency received any direct or indirect benefit arising from that particular contract.

Supplier registration, supplier information, reference library and catalogues

The value of obligations raised in the last quarter of the year amounted to 27 per cent of total obligations raised during the year for all peacekeeping missions.

The code of conduct would be communicated to all suppliers interested in doing business with the United Nations system of organizations and would not be mandatory or of a contractual nature.

In paragraph 48, the Board recommended that UNRWA adopt and implement a code of conduct for suppliers in line with the United Nations Supplier Code of Conduct.

Similarly, for management and operation of catering services at United Nations Headquarters, where 28 days were allowed, only 1 bidder responded out of 11.

A United Nations Supplier Code of Conduct is also being formulated.

The Procurement Service agrees with this recommendation. Staff members have been reminded of the registration requirements for awarding vendors a contract.