Measuring and minimizing procurement risk at FAO Bangladesh

Abstract

This report is prepared based on my personal experience working within the Procurement team at FAO Bangladesh. In some of its recent FAOs tender I have observed that FAO always ended up limited pool of repetitive vendors who participated through the open UNGM platform even though conducting Expressions of Interest (EOI).This clearly indicates that the FAO is facing a challenge with its inadequate vendor base. The report also identifies problems with developing criteria for the assessment of the suppliers. In several cases, none of the bidders met the minimum requirements, which indicates that the evaluation criterion was not prepared considering the actual capacity of the supply market. It also indicates a gap in technical expertise among the staff who prepared criteria, as well as a lack of alignment between procurement expectations and the actual capacity of the suppliers. To tackle these challenges, the FAO must widen and expand its current vendor base. FAO can meet its goal by working with other UN agencies and using EOI to reach as many people as possible. To carry this out, the FAO should do consistent market analysis, have informational meetings with potential vendors, and solicit opinions from vendors who weren't successful in the end. That way, the FAO can effectively communicate and engage with more vendors and supply market and make its bidding process much more transparent, open, and competitive. Additionally, hiring technical specialists and conducting regular training for the staff will ensure that technical documentation and evaluation frameworks are prepared in realistic way considering the capacity of the supply market. By implementing the recommendations stated in the report, FAO can bring efficiency, achieve supplier diversity, and minimize its procurement risk.