text: Moreover, thesystematic surveyoflocalmarkets byfieldoffices' management could alsobebeneficial inidentifying possible newsources oflocalprocurement in developing countries. 35.TheAdministration agreedwithoursuggestions andwillexamine thevarious practical possibilities inthisregard. Emergency procedure foreroprietary vehicle spareparts 36.Ourexamination disclosed thattheOfficeforprojects Execution hasapplied anemergency procurement procedure forthedelivery ofsparepartsfortrucksin thefieldin1984.Thisprocedure involved theplacing ofordersdirectly bythe fieldproject co-ordinator withasupplier abroad befor~requisitions wereissued bytheproject management officer. Subsequently theOfficeforprojects Execution purchase orderswereraisedcovering thetotalcostofthesparepartsasactually invoiced bythevendorinordertoregularize thetransaction. 37.Furthermore, wenotedthatthetotalofthepurchase ordersthusraised exceeded anamountof$300,000 andthat,inparticular, asinglerequisition from thefieldexceeding theamountof$40,000 wassplitupafterwards inordertoavoid submission totheContracts Committee. 38.TheAdministration admitted thattherehasbeenadeviation fromthe established rulesandprocedures butpointed outthattheprocurement of proprietary spareparts,particularly forprojects whereinterruption ofoperations couldbeextremely costly,iscurrently beingexamined bytheOfficeforprojects Execution inordertodeviseanagreedsystemthatwillserveboththepurpose of theprojects andalsobeconsistent withUNDPpolicies andprocedures. 39.Werecommended theintroduction ofa"direct provisioning system" asameans toexpedite andsimplify theprovision ofproprietary spareparts. Undersucha system, invitations tobidwouldbesentasusualtopotential manufacturers or suppliers butthecontract wouldbeawarded tothevendoroffering thelargest percentage discount onthemanufacturer's price-list forspareparts. Onthebasis of"blanket orders" thusplaced, fieldoffices maythenorderitemsdirectly from thevendorwhenneedsarise. -22- t.Competitive bidding onthebasisofequitable geographical distribution 32.Aspartofthepromotion ofprocurement bycompetitive bidding onthebasisof equitable geographical distribution, specific instructions ontheapproximate mix ofthegeographical originofmanufacturers andsuppliers tobeincluded in short-listings havebeenissued(seetheOfficeforprojects Execution's internal guidelines of29August1984). 33.Ourauditdisclosed nevertheless that,duetotheinsufficient numberof manufacturers andsuppliers fromdeveloping countries onthevendorroster, possible adherence bytheOfficeforProjects Execution totheseguidelines in practice ishighlyquestionable. Thefactindeedremains thatvendors from developing countries onlyoccasionally qualify fordelivery ofthetypesof equipment supplied via'theOffice. 34.Withaviewtoimproving thesituation, weadvised thattheOffice's purchasing Unitshouldutilize moreactively theservices oftheInter-Agency Procurement Services Unitandshouldpursueacontinuous exchange ofinformation withotherUnitedNations organizations maintaining detailed vendorrosters. Moreover, thesystematic surveyoflocalmarkets byfieldoffices' management could alsobebeneficial inidentifying possible newsources oflocalprocurement in developing countries. 35.TheAdministration agreedwithoursuggestions andwillexamine thevarious practical possibilities inthisregard. Emergency procedure foreroprietary vehicle spareparts 36.Ourexamination disclosed thattheOfficeforprojects Execution hasapplied anemergency procurement procedure forthedelivery ofsparepartsfortrucksin thefieldin1984.Thisprocedure involved theplacing ofordersdirectly bythe fieldproject co-ordinator withasupplier abroad befor~requisitions wereissued bytheproject management officer. Subsequently theOfficeforprojects Execution purchase orderswereraisedcovering thetotalcostofthesparepartsasactually invoiced bythevendorinordertoregularize thetransaction. 37.Furthermore, wenotedthatthetotalofthepurchase ordersthusraised exceeded anamountof$300,000 andthat,inparticular, asinglerequisition from thefieldexceeding theamountof$40,000 wassplitupafterwards inordertoavoid submission totheContracts Committee. 38.TheAdministration admitted thattherehasbeenadeviation fromthe established rulesandprocedures butpointed outthattheprocurement of proprietary spareparts,particularly forprojects whereinterruption ofoperations
analysis: The text appears to be discussing the procurement of goods and services, particularly spare parts for vehicles, in the context of development projects. It highlights the importance of competitive bidding, local procurement, and the need for a system that is consistent with UNDP policies and procedures. The text also touches on the issue of vendors from developing countries not qualifying for delivery of certain equipment. This suggests that the category should be related to economic development, procurement, or international cooperation.