World Food Programme

Introducing WFP Procurement

May 2016
WFP Procurement

The World Food

Programme provides
food assistance to
meet emergency
needs and to support
economic and social
development.

.
WFP aims to bring food assistance to
more than 90 million people in 75
countries.

In 2015, WFP procured over USD 2.6

billion of food, goods and services to
support the distribution of
approximately 4-5 million metric tons of
food.
WFP Procurement in 2015

TOTAL:
USD 2.63 billion

Goods and Services

USD 587 million

Logistics
USD 974 million

Food
USD 1.07 billion
Food Procurement
Food Procurement – Key Roles

• Undertake all food procurement for WFP operations

worldwide as well as for third parties such as UN
Agencies, Governments and NGOs
• Provide oversight, technical expertize and guidance to
all WFP offices to ensure that food procurement is
undertaken in a cost effective, timely and transparent
manner
• Support the development and implementation of
strategies, policies and plans to meet WFP’s mandate
 2015 Key Categories: Food
2

TOTAL:
USD 2.63 billion

Goods and Services

USD 587 million

Food
USD 1.07 billion

Logistics
USD 974 million
Food Procurement – Conditions

Conditions affecting food procurement

• Donor country conditions/restrictions

(origin/ destination/quality /packing /marking etc.)

• Recipient country requirements

(product/origin/packing/import regulations)

• Impact on local market/economy

(harvest/lean period/surplus)
Top WFP Food Vendor countries in
2015 (sorted by value)
Rank Country Volume (MT) Value (USD) % volume % value

1 Turkey 461,767 269,336,834

2 Netherlands 333,325 72,916,210 15% 7%

3 Italy 110,083 58,860,129

4 Singapore 90,931 52,199,444

5 Belgium 75,721 44,671,270

6 Ethiopia 117,905 35,190,094

7 France 12,059 34,220,225

8 Jordan 36,780 30,774,245

9 Russia 41,288 30,730,464

10 Pakistan 43,790 23,207,615

Grand Total 2,208,414 1,065,110,308

Food Purchases from Dutch
Suppliers in 2015

Commodity Volume (MT) Value (USD) % of global volume

WHEAT 329,495.98 69,638,216.17 84.04%
SUGAR 1,564 618,562 0.03%
RICE 1,318.97 735,500.03 0.00%
DRIED WHOLE
MILK 775 1,759,250 100.00%
BEANS 170.6 164,681.6 0.18%
Grand Total 333,324.55 72,916,209.8 15.09%
Food Purchases of Dutch Origin in
2015

% of global
Commodity Volume (MT) Value (USD) volume
DRIED WHOLE
MILK 775 1,759,250 100%

SUGAR 1,564 618,562 3%

Grand Total 2,339 2,377,812 0%

Recipients Countries of Food from
Dutch Suppliers
Commodity Recipients Volume (MT) Value (USD)
BEANS CO-CUBA 91 66,682
CO-PHILIPPINES 80 98,000
DRIED WHOLE MILK CO-DPR KOREA 775 1,759,250
RICE CO-HONDURAS 1,021 547,268
CO-NICARAGUA 298 188,233
SUGAR CO-CAMEROON 184 75,256
CO-SYRIA 1,058 411,608
FORWARD PURCHASE NOMINAL PLANT 322 131,698
WHEAT CO-DPR KOREA 1,104 343,344
CO-YEMEN 62,208 12,358,542
FORWARD PURCHASE NOMINAL PLANT 128,483 25,698,495
GCMF-FPF MIDDLE EAST ZONE 40,000 8,438,000
WFP HEADQUARTERS 97,700 22,799,835
Grand Total 333,325 72,916,210
Historical Purchases from Dutch
Suppliers

Year Volume (MT) USD Value

2013 77,781 26,765,508

2014 107,582 35,717,532

2015 333,325 72,916,210

2016 (May) 201,386 40,490,607

Historical Purchases of Dutch
Origin

Year Volume (MT) USD Value

2013 8,690 4,681,299
2014 12,445 7,908,895
2015 2,339 2,377,812
2016 9,154 4,090,711
Goods & Services (G&S)
Procurement
 G&S Procurement

Contracts with commercial providers are managed by WFP’s

Goods & Services Procurement Branch*.
 Headquarters at Rome, Italy
 Regional Bureaux at 5 locations worldwide
 Field Offices in 80 countries worldwide
G&S Procurement has always been a core functional area
within WFP. Since 2004 the volume of G&S procurement by
value has grown by 200%
The G&S Procurement branch procures on behalf of WFP,
however, some linked structures like UNHRD also procure
on behalf of the wider UN and governmental/non-
governmental agencies.
*with the exception of warehouse leasing, fleet management, shipping & contracting of air assets
covered by WFP logistics
 2010-2015 Procurement G&S
1

In 2015 WFP Procurement purchased USD587m of G&S.

Ebola

Syria

Yemen

South Sudan
 2015 Key Categories: Goods & Services
1

TOTAL:
USD 2.63 billion

Goods and Services

USD 587 million

Logistics
USD 974 million

Food
USD 1.07 billion
G&S Procurement – Key Role

 Four Principal Functions

 Oversee & manage large value G&S field procurement
 Undertake all G&S procurement at WFP headquarters.
 Manage all policy guidance and support to WFP offices worldwide;
 Engage with external clients, when WFP commits to procure on
behalf of other UN Agencies/other actors.

 Ensure all G&S procurement is undertaken in a consistent,

cost effective and transparent manner respecting the
guiding principles of UN procurement.

 Provide procurement expertise to external actors, as

required
 G&S Procurement - Key categories

 Fuel, in particular Jet-A1

 Construction
 ICT GOODS SERVICES
 Consultancy services USD 278m USD 309m
 Vehicles (47%) (53%)
G&S Procurement – Main Vendor
Countries 2015
Top 10 Vendor countries
Goods & Services Procurement
from Netherlands 2015
Top 10 categories for Netherland vendors Top 10 European vendor countries

Top 10 Vendor Countries

By continent
G&S Procurement – Construction

Construction accounts for the third-largest

Construction
goods and services spending category. WFP uses
was 10.7% of its in-house expertise in the areas of logistics,
WFP’s Goods procurement and engineering to successfully
and Services carry out numerous construction projects
budget in 2015 around the globe.

This involves building roads, bridges,

airstrips and ports, offices, guesthouses,
warehouses, schools and camps.
WFP undertakes construction to support
the longer-term needs of national
governments, the humanitarian community
and WFP’s own operations. Projects vary
in scale and complexity depending on their
location, the local context, and scope.
WFP Construction

In response to the unprecedented scale of

the Ebola Virus Disease outbreak in West
Africa, WFP was heavily involved in the
procurement of goods and services to
support the emergency response.
To assist the wider humanitarian
community, the organization made first-
time purchases of ambulances, treatment
units, incinerators and medical beds - items
specific to the large scale health response.
These items required Procurement to
WFP Ebola undertake rapid market assessments and
response identify suppliers that could quickly fulfil
entailed more orders to meet specifications. Due to the
than 35.5 urgent timelines, WFP often made special
arrangements for the transport of goods,
million USD
including airlifting items when required
(2014 and 2015)
to shorten delivery time.
ICT – Corporate IT & FITTEST

WFP’s IT Division at its Rome Headquarters

is responsible for the establishment,
implementation and governance of WFP’s IT
strategy worldwide. It is supported by IT
officers at Regional Bureaux and in WFP
Field Offices.

In addition, WFP’s Fast IT and

Telecommunications Emergency Support
Team (FITTEST) is a leader in establishing
vital IT and communications infrastructure
during emergencies.
In 2015 WFP’s
ICT expenditure WFP is the UN cluster lead for Emergency
exceeded Telecommunications. FITTEST operates
USD 70m within the cluster.
Logistics
 2015 Key Categories: Logistics
2

Logistics Division – USD 974.2 millions

In 2015, logistics handled 2.2 million metric tons of food

TOTAL:
USD 2.63 billion Land USD 400.2 m

Goods and Services Ocean USD 148.1 m

USD 587 million
Air* USD 260.9 m
Food Other transport USD 165.0 m
USD 1.07 billion related costs **

TOTAL USD 974.2 m

Logistics
USD 974 million

WFP is the UN Cluster lead for Logistics

*Air: cost cover the transport of food, passengers and misc.
** Like: Equipment, Utilities, Supplies, Materials, and Other Related Products
How to do business with WFP?

Understand Promote Register on Participate

WFP’S your UNGM and to WFP
Requirements products In-tend tenders

1. Check out the document “how to do business with WFP” on

www.wfp.org
2. Understanding WFP’s G&S requirements
3. Send a presentation of your products to WFP.
4. Register on www.ungm.org to be in the Vendor lists of all UN
5. Register on https://ungm.in-tend.co.uk/wfp/aspx/Home to be
ready if selected for a WFP tender
6. Participate to WFP tenders when invited
Requirements to Contract with WFP

• Goods and services are of interest to WFP

• Legal capacity to enter into a contract with WFP
• Has the financial standing to honor a contract
• Has proven ability to perform
• Company has a minimum of three years’ experience as
an established business
• Company accepts WFP’s general terms and conditions,
including its payment terms
World Food Programme
Via C. G. Viola 68/70
00148 Rome, Italy

Edmondo Perrone
Vendor Management Officer
Email: [email protected]

Francesco Giusso
Chief, Goods & Services
Procurement Division
Email: [email protected]