United Nations Peacekeeping: Lines of Authority for Field Procurement Remain Unclear, but Reforms Have Addressed Some Issues
Published: 2008-09-18T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The United States is the largest financial contributor to United Nations (UN) peacekeeping operations--providing about $1.4 billion in 2008 (about 26 percent of the total UN peacekeeping assessed budget)--and has a strong interest in the efficient and effective management of these operations. The size and scope of UN peacekeeping has significantly increased over the past several years and the UN has pursued management reforms to strengthen its capacity to support operations. GAO was asked to examine (1) the status of the current restructuring and strengthening of peacekeeping management including procurement for the field, (2) the status of reforms to address previously identified problems with peacekeeping procurement, and (3) the UN Logistics Base's support of peacekeeping operations. GAO reviewed relevant UN documents; conducted structured interviews with chief procurement officers at 20 peacekeeping missions; and interviewed UN and U.S. officials. State agreed with the report and commented that it would draw upon some of the report findings in its discussion with the United Nations. The UN agreed with GAO's assessment of the status of reforms and provided technical comments, which are addressed in the report as appropriate.
section_title: What GAO Found
paragraphs: The United Nations (UN) is in the process of restructuring and strengthening its organization for peacekeeping management, but has not resolved the issue of authority for field procurement, which is fundamental to the restructuring. Instead, the authority for field procurement remains divided between two departments, leaving the lines of accountability and responsibility for field procurement unclear. Member states are also concerned that the head of the new Department of Field Support reports to and takes direction from the head of the Department of Peacekeeping Operations on matters related to peacekeeping missions. The UN has not yet appointed several key senior-level staff for both departments, at a critical time in the restructuring. The UN has made some progress in implementing procurement reforms to improve internal controls and processes. For example, the UN Secretariat has established financial disclosure requirements for all staff involved in the procurement process, expanded training for peacekeeping staff and updated its procurement manual. However, these efforts have not addressed some previously identified concerns, including difficulties in attracting and retaining field procurement staff and in applying procurement processes in the field. The UN Logistics Base (UNLB) in Brindisi, Italy, provides important communications and logistical support to peacekeeping operations and has expanded considerably since 2002. UNLB maintains the UN's worldwide information and technology network and provides peacekeeping missions with stocks that are essential during start-up. In response to peacekeeping mandates, UNLB has further expanded to take on tasks such as training and aviation support. However, its growth over the past 5 to 6 years has raised concerns of the General Assembly, which requested that it clarify its role and future development plans.

section_title: Letter
paragraphs: The United States is the largest financial contributor to United Nations  The United States is the largest financial contributor to United Nations  (UN) peacekeeping operations—providing about $1.1 billion in 2008—and  (UN) peacekeeping operations—providing about $1.1 billion in 2008—and  has a strong interest in the efficient and effective management of these  has a strong interest in the efficient and effective management of these  operations. Over the past several years, the size and scope of UN  operations. Over the past several years, the size and scope of UN  peacekeeping has increased more than four-fold. In January 2000, the UN  peacekeeping has increased more than four-fold. In January 2000, the UN  deployed about 18,000 troops, police, and observers to peacekeeping  deployed about 18,000 troops, police, and observers to peacekeeping  operations worldwide. As of August 2008, the UN had over 88,000  operations worldwide. As of August 2008, the UN had over 88,000  peacekeeping troops, police, and observers conducting 16 peacekeeping  peacekeeping troops, police, and observers conducting 16 peacekeeping  operations in 15 countries. The UN operations support U.S. national  operations in 15 countries. The UN operations support U.S. national  interests by carrying out mandates to help stabilize regions and promote  interests by carrying out mandates to help stabilize regions and promote  international peace. Some mandates for these operations include working  international peace. Some mandates for these operations include working  to ensure that southern Lebanon is not utilized for hostile activities;  to ensure that southern Lebanon is not utilized for hostile activities;  assisting with the restoration and maintenance of the rule of law and  assisting with the restoration and maintenance of the rule of law and  public safety in Haiti; and contributing to the protection of civilian  public safety in Haiti; and contributing to the protection of civilian  populations and facilitating humanitarian activities in Darfur.  populations and facilitating humanitarian activities in Darfur.
To effectively carry out its increased peacekeeping responsibilities, the UN  To effectively carry out its increased peacekeeping responsibilities, the UN  has been pursuing the implementation of various management reforms,  has been pursuing the implementation of various management reforms,  including some contained in the Secretary-General’s 2007 reform proposal  including some contained in the Secretary-General’s 2007 reform proposal  to restructure peacekeeping management. The management and  to restructure peacekeeping management. The management and  organizational restructuring was intended to strengthen the UN’s capacity  organizational restructuring was intended to strengthen the UN’s capacity  to direct and support operations by splitting the Department of  to direct and support operations by splitting the Department of  Peacekeeping Operations (DPKO) into two departments—DPKO and a  Peacekeeping Operations (DPKO) into two departments—DPKO and a  newly created Department of Field Support (DFS). Two core elements of  newly created Department of Field Support (DFS). Two core elements of  the proposed restructuring are the transfer authority for field procurement  the proposed restructuring are the transfer authority for field procurement  from the Department of Management to DFS and the strengthening of  from the Department of Management to DFS and the strengthening of  DPKO and DFS at senior managerial levels. Other reforms include efforts  DPKO and DFS at senior managerial levels. Other reforms include efforts  to strengthen UN procurement processes and to develop and expand the  to strengthen UN procurement processes and to develop and expand the  UN logistics base. UN procurement totals about $2 billion annually and  UN logistics base. UN procurement totals about $2 billion annually and  has been vulnerable to fraud, waste, and abuse, according to UN oversight  has been vulnerable to fraud, waste, and abuse, according to UN oversight  reports. UN and GAO reports in 2006 and 2007 identified weaknesses in  reports. UN and GAO reports in 2006 and 2007 identified weaknesses in  procurement and made recommendations to address them, such as  procurement and made recommendations to address them, such as  clarifying lines of authority between headquarters and the field. The U.S.  government also has expressed concerns that a number of procurement  reforms have experienced delays, including the establishment of an  independent bid protest system and the need to improve transparency and  accountability in UN procurement activities. The UN Logistics Base  (UNLB) has been operating in Brindisi, Italy, since 1994 to contribute to  efficient and effective peacekeeping operations. In 2002, UNLB’s role was  expanded to focus on providing strategic deployment stocks (SDS) for  rapid start-up of new missions. With the growth of peacekeeping, UNLB  has taken on additional duties, such as providing the communications  network for all missions.
In this report, we examine (1) the status of restructuring and strengthening  peacekeeping management, including the authority for field procurement;  (2) the status of reforms to address previously identified problems with  peacekeeping procurement; and (3) UNLB’s support of peacekeeping  operations and its recent expansion.
To address these objectives, we reviewed UN planning and budget reports,  General Assembly resolutions, performance reports and evaluations, and  other UN documents. We also reviewed UN staffing, budget, and  procurement data. In addition we reviewed previous GAO reports on UN  management and procurement reforms and used the internal controls  framework that is widely accepted in the international audit community  and has been adopted by leading accountability organizations. At UN  headquarters in New York, we met with officials from DPKO, DFS, the  Department of Management, and the Office of Internal Oversight Services.  We also met with officials at the U.S. Mission to the United Nations and  with representatives of other UN member states. In addition, we  conducted structured interviews with chief procurement officers at 20  field missions, including all 17 peacekeeping missions and the 3 special  political missions directed by DPKO. During these interviews, we  discussed procurement reforms and processes, followed up on previous  GAO findings, and also discussed issues related to peacekeeping  management and UNLB. In Washington, D.C., we met with State and DOD  officials. We also traveled to Rome and Brindisi, Italy, to meet with  officials from UNLB and the UN Humanitarian Response Depot, as well as  representatives of the U.S. Mission to the Rome-based UN organizations.
We conducted this performance audit from August 2007 to September 2008  in accordance with generally accepted government auditing standards.  These standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives. Appendix I provides a more  detailed description of our objectives, scope, and methodology.
subsections: section_title: Background
subsections: section_title: Restructuring Peacekeeping Management
paragraphs: One of Secretary-General Ban Ki-Moon’s first major initiatives, upon  beginning his tenure in 2007, was to submit to the General Assembly a  proposal to restructure the Department of Peacekeeping Operations  (DPKO) and establish the Department of Field Support (DFS). The  Secretary-General’s proposal, built on previous reform efforts, included  requests to reorganize the offices within DPKO, provide additional senior  and professional staff for both departments, create new capacities and  integrated structures, and transfer resources and authority for field  procurement from the Department of Management to DFS. The Secretary- General proposed adding 400 new posts funded under the UN’s support  account for peacekeeping operations, including 162 posts in DPKO and  123 posts in DFS. In August 2007, the General Assembly approved many  but not all of the elements of the Secretary-General’s proposal, listed  below:    Creation of new structures, including establishment of DFS from  DPKO’s former Office of Mission Support; within DPKO, consolidation  of former offices into an Office of Rule of Law and Security Institutions  and a Policy, Evaluation and Training Division; and reconfiguration of  the Africa Division into two divisions;    Creation of new capacities, such as a Public Affairs Unit within  DPKO’s Office of the Under-Secretary-General; a security sector reform  capacity in the Office of Rule of Law and Security Institutions, and  evaluation and partnership capacities in the Policy, Evaluation and  Training Division; Increase in number of senior and working-level positions, including  the creation of new positions such as Under Secretary-General of DFS,  and Chief of Staff of DPKO (responsible for overseeing the  implementation of the DPKO/DFS restructuring, among other duties);  and upgrading the Military Advisor position to the Assistant Secretary- General level.
Elements of the Secretary-General’s restructuring proposal that were not  approved by the General Assembly included the following:    Establishment of the Field Procurement Service within DFS, which  would have increased the delegation of authority for field procurement  in DFS;    Creation of 17 of the 42 positions requested for Integrated Operational  Teams, located within DPKO; and    Creation of a risk management capacity within DFS.
The Secretariat set a target date of March 2008 to finish recruitment of  new staff and a target date of June 2008 to implement the restructuring of  DPKO and DFS.
section_title: UN Procurement Reforms
paragraphs: UN spending on procurement has grown significantly over the past decade  as peacekeeping operations have expanded, as the Procurement Division  has reported increases in procurement spending from about $318 million  in 1998 to approximately $1.9 billion in 2007. According to DFS, over 85  percent of the UN’s procurement spending is in support of peacekeeping  operations, with field missions accounting for almost 50 percent of total  UN procurement.
Peacekeeping procurement is conducted both by field missions and the  headquarters Procurement Division, located within the Department of  Management. The Procurement Division develops policies and procedures  for headquarters and field procurement based on the UN Financial  Regulations and Rules. The Procurement Division also oversees training  for procurement staff and provides advice and support for field purchases.  In addition, the Procurement Division negotiates, prepares, and  administers contracts for goods and services for peacekeeping missions.  These involve multi-year systems contracts for goods and services such as  air transportation or vehicles.
Each field mission has a procurement section led by a chief procurement  officer who typically has a personal delegation of procurement authority  to award contracts up to $75,000. Contracts or purchase orders above the  authority delegated to chief procurement officers must be approved by the  mission’s Director or Chief of Mission Support, based on the advice of the  mission’s Local Committee on Contracts (LCC), which reviews and  recommends contract awards above delegated authorities. Contracts  worth more than $500,000 must first be recommended by the Director or  Chief of Mission Support based on the advice of the LCC. The cases are  then forwarded to the Headquarters Committee on Contracts (HCC),  located in New York for review. The HCC reviews proposed awards and  provides a recommendation to the Assistant Secretary-General of the  Office of Central Support Services (the contracting approval authority), as  to whether the contracts are in accordance with the UN Financial  Regulations and Rules and procurement policies.
UN procurement reform is an important element of strengthening the  management of peacekeeping and weaknesses in UN procurement have  raised significant concerns. In 2006, we reported that weak internal  controls over UN peacekeeping procurement expose UN operations to risk  of waste, fraud, and abuse. We further reported that the UN’s control  environment for procurement is weakened by the absence of (1) an  effective organizational structure, (2) a commitment to a professional  workforce, and (3) specific ethics guidance for procurement staff. To  address these concerns, we recommended that the Secretary of State and  the Permanent Representative of the United States to the UN work with  other member states to encourage the Secretary-General to take the  following eight actions:    Establish clear and effective lines of authority and responsibility  between headquarters and the field for UN procurement,    Enhance the professionalism of the UN procurement workforce by  establishing a comprehensive procurement training program and a  formal career path,    Provide the Headquarters Committee on Contracts with an adequate  structure and manageable workload for contract review needs,    Establish an independent bid protest process for UN vendors,    Take action to keep the UN procurement manual complete and  updated on a timely basis and complete ethics guidance,    Develop a consistent process for providing reasonable assurance that  the UN is conducting business with only qualified vendors,    Develop a strategic risk assessment process that provides reasonable  assurance of systematic and comprehensive examination of  headquarters and field procurement, and    Standardize and strengthen monitoring of procurement activities by  procurement managers, including actions to ensure that oversight  agencies’ recommendations are implemented and that officials are held  accountable for their actions.
In November 2007, as part of a broader review of UN management  reforms, we reported that the UN Secretariat had improved the UN  procurement process, but not in all the areas of vulnerability we had  previously identified. Internal UN oversight entities have also reported on  UN procurement activities and reforms. In a February 2007 report  summarizing its audits and investigations of peacekeeping operations, the  Office of Internal Oversight Services (OIOS) identified serious deficiencies  in procurement management, systems, and processes. In October 2007, the  UN’s Procurement Task Force also raised concerns about internal controls  involving contracts that it reported to have a value of approximately $610  million and identified fraud and corruption schemes related to some of  them. The Procurement Task Force further reported that these cases  involved a misappropriation of approximately $25 million.
section_title: UN Logistics Base
paragraphs: The UN Logistics Base (UNLB) in Brindisi, Italy, is a permanent logistics  base that supports UN peacekeeping operations and has been in operation  since 1994. The predecessor to UNLB, located in Pisa, Italy, was used as a  storage facility for assets received upon the closure of DPKO missions, but  with the increase in peacekeeping missions, the need arose for a more  strategically located facility in which to store and maintain reserves for  missions.  Since 1994, UNLB has evolved to provide additional services  including logistics, communications, and other support services to UN  peacekeeping missions and has a budget of just over $45 million for fiscal  year 2008-2009. UNLB has a natural deepwater harbor as well as air, road,  and rail infrastructure, and is within 5,000 kilometers, or a 6-hour flight, of  most peacekeeping operations (see fig. 1). Under a memorandum of  understanding with the Government of Italy, UNLB occupies the Brindisi  premises rent free. The World Food Program manages a UN Humanitarian  Response Depot adjacent to the UNLB facility.
In 2002, UNLB began managing strategic deployment stocks (SDS), which  include equipment used for the start-up of new missions. SDS is designed  to help enable the rapid deployment of new missions within 30 to 90 days.  To ensure that it is always in a state of readiness to support a newly  established mission, UNLB maintains SDS as a revolving inventory that is  replenished after equipment is shipped to missions.
section_title: Restructuring of Peacekeeping Management under Way, but Ambiguity Remains on Procurement Lines of Authority
paragraphs: The United Nations is in the process of restructuring and strengthening its  organization for peacekeeping management, but the Secretary-General and  General Assembly have not decided whether the Department of  Management or the Department of Field Support (DFS) will have full  authority for field procurement. According to procurement officers in the  field, authority and responsibility for peacekeeping is divided and remains  unclear (A full discussion of the implementation of procurement reforms  is in the following section). Although the reorganization of the  Departments of Peacekeeping and Field Support is largely in place, some  member states are concerned that the Under Secretary-General of DFS  reports to and takes direction from the Under Secretary-General of DPKO  for matters related to DPKO-managed field operations, in an arrangement  that is both new and unique within the UN. Both departments are  proceeding to recruit the additional staff authorized, but the recruitment is  behind schedule and several key senior-level positions have not been  permanently filled, according to the UN.
subsections: section_title: Decision on Authority for Field Procurement Has Not Been Made and Lines of Authority and Responsibility Remain Unclear
paragraphs: The authority for field procurement remains divided between the  Department of Management and DFS. In his 2007 peacekeeping  restructuring proposal, the Secretary-General considered the delegation of  authority and resources for field procurement to DFS fundamental to the  rationale for realigning peacekeeping and establishing the new  department. The Secretary-General’s plan further stated that this transfer  of authority would simplify the line of authority and accountability for  procurement and would result in more timely delivery of goods and  services to the field. In 2007, however, the General Assembly deferred its  decision on whether to approve the transfer of authority for field  procurement and approximately 50 staff from the Department of  Management to DFS, pending the submission of a report by the Secretary- General. This report is to explain in detail the proposed management  structure for procurement, including procurement procedures for  peacekeeping operations. The General Assembly originally requested that  this report be issued in time for its fall 2007 session, but the Secretary-  General has not yet issued it.
In 2006, we reported that the division of authority over field procurement  between the Department of Management and DPKO had led to diffused  accountability over procurement functions. We reported that because the  UN had not established a single organizational entity or mechanism  capable of comprehensively managing procurement, it was unclear which  department was accountable for addressing problems in the UN’s field  procurement process. To address these concerns, we recommended that  the Secretary of State and the Permanent Representative of the United  States to the UN work with other member states to encourage the  Secretary-General to establish clear and effective lines of authority  between headquarters and the field for UN procurement, among other  steps. The U.S. government’s position is that the UN must fix systemic  problems in the UN procurement system including the lack of  accountability and an ineffective and inefficient organizational structure.
Officials of both the Department of Management and DFS acknowledge  that the current divided authority for procurement is an area of  vulnerability. For example, Department of Management officials told us  that the dual control over procurement prevents the strategic management  of procurement. These officials stated that the Department of  Management’s procurement division has overall responsibility for UN  procurement, but lacks authority or jurisdiction over peacekeeping  missions. DFS officials agreed that the continued divided management  structure for field procurement is problematic. These officials said that  each field procurement crosses between the Departments of Management  and Field Support multiple times, which is inefficient and leaves open the  question of which department is ultimately accountable and responsible  for the procurement. Figure 2 illustrates the divided lines of authority in  the procurement of goods and services that exceed field mission authority,  with approval and clarifications moving back and forth between DFS and  the Department of Management before the procurement is completed.
In our structured interviews, chief procurement officers at peacekeeping  missions commented that the lack of clear authority and accountability  continues to adversely impact them. Eighteen of the 20 chief procurement  officers we interviewed outlined challenges or difficulties stemming from  the division of responsibilities for field procurement. For example, DFS  does not have full operational control and authority for field procurement  because it does not approve individual cases, according to one chief  procurement officer. The Department of Management’s Procurement  Division does review cases before they are submitted to the Headquarters  Committee on Contracts, but is not operationally accountable for late  procurements in the field, according to another chief procurement officer.  As a result, one field procurement officer told us that, even when a  procurement delay impacts a mission’s operation, it is possible that no one  can be held accountable because procurement staff followed the rules and  procedures of their departments. Eighteen of the 20 chief procurement  officers we interviewed also expressed confusion or uncertainties over the  division of responsibilities between the two departments as well as which  department they should seek guidance from. For example, several chief  procurement officers told us that the Procurement Division indicated that  they should not communicate with the division on procurement questions,  but should instead ask DFS. However, DFS has only a two-person office to  assist field missions with their procurement concerns, and several of the  chief procurement officers said that DFS lacks the resources needed to  sufficiently support field procurement. Several chief procurement officers  also said they feel like “orphans” and are often left on their own to make  procurement decisions in isolation.
Department of Management and DFS officials expressed opposing views  on how to resolve the issue of divided authority for field procurement.  Department of Management officials stated that transferring authority and  resources for procurement to DFS would weaken internal controls by  including the field requisitioning and procurement functions within the  same department. These officials also said that the procurement division  within the Department of Management should be given overall  responsibility for all UN procurement, including in the field. DFS officials,  however, stated that they should be provided the authority and staff to  conduct field procurement. These officials said that procurement  procedures need to be improved to reflect the realities of conducting  procurement in the field. They pointed out that expediting field  procurement was central to the Secretary-General’s peacekeeping reform,  and the continuation of the status quo on field procurement raises the  question of why DFS was created. Some chief procurement officers said a  decision should be made as soon as possible but did not express an  opinion about which department should be given overall responsibility for  field procurement.
section_title: Restructuring of DPKO and DFS Is Largely in Place, but Member States Have Raised Several Concerns
paragraphs: As of August 2008, the reorganization of peacekeeping management is  largely in place, including the co-location of staff from the Departments of  Peacekeeping Operations and Field Support and new offices for both  departments. Co-location included moving offices and staff of both  departments to adjacent locations within the UN so that they could work  together on common issues. DPKO also established new offices such as  the Office of Rule of Law and Security Institutions, which consolidated the  existing police, justice, corrections, mine action, and disarmament and  demobilization units. This new office is intended to be more  comprehensive in helping reform a country’s police and military and  developing its courts and judiciary. One element of the reorganization that  is still in process is the development of the Integrated Operational Teams  within DPKO. These teams, which are intended to improve coordination  between UN departments in planning, deploying, and supporting  peacekeeping operations, were approved by the General Assembly in 2007,  but are not fully established. DPKO planned to have seven teams—made  up of  political, military, police and support specialists—operational by  March 2008. As of June 2008, the team for the joint United Nations/African  Union Mission in Darfur is the only one that is fully operational. Figure 3  highlights the reorganization’s major changes to the organizational  structures of DPKO and DFS.
Although UN officials have told us the restructuring of the Departments of  Peacekeeping and Field Support is mostly in place, some member states  are concerned that the newly established Under Secretary-General of DFS  reports to and takes direction from the Under Secretary-General of DPKO  for matters related to DPKO-managed field operations. The Secretary- General intended this organizational structure to ensure cooperation and  integration between the two departments. However, the General Assembly  specified that this arrangement, with one Under Secretary-General  subordinate to another, was not to set a precedent. The UN Advisory  Committee on Administrative and Budgetary Questions (ACABQ), as well  as several of the representatives from individual member states that we  spoke to, expressed concern over the feasibility of this arrangement, given  that it is both new and unique within the UN.
The ACABQ has raised concerns about the Secretary-General’s proposal to  strengthen DPKO’s Office of Military Affairs. The Secretary-General  reported that the office lacked the rank, capacity, and specialist  capabilities to successfully fulfill the functions of a strategic military  headquarters for peacekeeping operations in routine and crisis situations.  In March 2008, the Secretary-General proposed to expand the Office of  Military Affairs by 92 positions, upgrade it with higher-ranking military  officers, and expand its functions. The ACABQ reviewed the Secretary- General’s proposal, and although it did support additional strengthening of  the office, it did not recommend approval. The ACABQ reported that the  Secretary-General had not substantiated the challenges faced by the Office  of Military Affairs with relevant data and did not submit the proposal as  part of a comprehensive budget for peacekeeping support. The General  Assembly subsequently approved 45 new posts and requested the  Secretariat to further report on the strengthening and restructuring of the  Office of Military Affairs.
section_title: Recruitment of Additional Staff Is Proceeding, but Senior-Level Turnover Has Raised Concerns
paragraphs: As of August 2008, a UN official informed us that 134 of the 152 new staff  positions authorized by the General Assembly for DPKO and DFS had  been selected. However, the departments had established a goal to fill all  of the newly-created positions by March 2008. A DPKO official informed us  that the hiring of staff has taken longer than expected because of the UN’s  lengthy hiring process. Filling positions at the senior level is a particular  concern because the restructuring is being completed while the UN is  expanding peacekeeping missions. In addition, new Under Secretaries  General for both DPKO and DFS were just appointed in June 2008 and  March 2008, respectively. According to the UN, DPKO has 26 senior staff  positions with 7 of them not filled by permanent appointees, and DFS has  15 senior staff positions with 5 not filled by permanent appointees. Key  positions that are vacant or are temporarily filled include DPKO’s Chief of  Staff (who ensures coordination between DPKO and DFS and oversees the  implementation of the restructuring, among other activities), the principal  officers of both Africa divisions, and DFS’s Director of Logistics Support,  according to a UN official. In addition to these positions, DFS reported  that the Assistant Secretary-General for Field Support and the Chief of  Transport and Movement vacated their posts in late August 2008.
The UN Advisory Committee on Administrative and Budgetary Questions  (ACABQ) has raised concerns that the vacancies and the many new  appointees are likely to have a major impact on the performance of the  two departments. According to the ACABQ, it is unclear how these vacant  positions, as well as the limited amount of time the newest senior  appointees have been in their positions, will affect the restructuring  implementation. DFS officials disagreed with the ACABQ’s assessment  because, in their view, the mid-level staff are experienced and will provide  continuity despite senior management changes. Moreover, the duties of  many of the vacant senior level positions are being carried out by  experienced staff, who temporarily fill these positions, according to UN  officials.
section_title: Peacekeeping Procurement Reforms Are Proceeding, but Have Not Addressed Some Previously Identified Concerns
paragraphs: The United Nations has made some progress in implementing  procurement reforms, but has not resolved continuing concerns in areas  such as developing career paths for procurement officers in the field.  Reforms have included policies to strengthen internal controls—including  the expansion of financial disclosure requirements to cover all  procurement staff—and efforts to improve the procurement function, such  as an expansion of training for procurement staff. However, these reforms  and initiatives have not addressed some previously identified concerns,  such as difficulties in attracting and retaining field procurement staff.  Chief procurement officers at peacekeeping missions raised these and  other concerns as continuing challenges to conducting procurement  activities in the field. See table 1 for a summary of UN procurement reform  accomplishments and continuing concerns.
subsections: section_title: Recent Reforms Have Included Policies to Strengthen Internal Controls and Actions to Improve the Procurement Function
paragraphs: The UN has made progress in implementing procurement reforms, in  particular through the issuance of several organizationwide policies to  improve internal controls. The UN also has taken steps to improve the  functioning of procurement in headquarters and the field through  expanded training and updates to its vendor management database and  procurement manual, among other initiatives. Following a World Summit  held in 2005, the UN outlined a series of procurement reform actions in  2006, and the Procurement Division established a Procurement Reform  Implementation Team to implement these reform initiatives focused on  internal controls, the procurement process, and strategic management. In  a November 2007 status update on these reforms, the Secretariat reported  that it had implemented 35 of 74 total reform actions, including 10 of the  27 main reform deliverables.
subsections: section_title: Procurement Division Has Implemented Policies to Improve Internal Controls
paragraphs: As part of the UN’s procurement reform process, the Secretariat has  initiated or revised several procurement policies intended to improve  internal controls covering the overall UN procurement process.  Initiatives that the Department of Management’s Procurement Division has  implemented include the following:    Financial disclosure requirement for procurement staff. In 2007, the UN  expanded its financial disclosure requirements, previously only required  for senior-level staff, to also cover all staff involved in procurement  activities regardless of their function or grade level. These staff are  required to file a disclosure or declaration of interest on an annual basis.
Post-employment restrictions. In 2007, the Secretary-General issued a  bulletin establishing a post-employment restriction for all UN staff  members participating in the procurement process. The policy prohibits  former UN staff members from accepting employment or compensation  from any UN contractor for 1 year following their UN employment.
Supplier code of conduct. In 2006, the UN issued a supplier code of  conduct on its Web site to raise awareness of the ethical responsibility of  the vendor community. It included discussions of issues such as the  avoidance of conflict of interest. In 2007, the UN revised the supplier code  of conduct to reflect the latest provisions on post-employment restrictions.
Ban on gifts for Procurement Division staff. The Procurement Division  also has issued a guideline for its staff establishing zero tolerance for gifts  and hospitality from UN vendors. This guideline is more stringent than the  relevant provisions of the existing UN Staff Rules, which are applicable to  the staff at large and allow staff to receive gifts of a nominal value, under  certain conditions.
section_title: UN Has Expanded Procurement Training for Headquarters and Field Staff
paragraphs: In 2006, we reported that the UN had not established training requirements  for its procurement staff, resulting in inconsistent training levels across  the procurement workforce. Other studies had also found that UN  procurement staff lacked sufficient knowledge of procurement policies  and procedures. The Procurement Division, in coordination with the  Office of Human Resources Management and the Inter-Agency  Procurement Services Office (IAPSO), has since developed a series of  training courses for headquarters and field staff that were delivered in  2007 and 2008. These training modules covered topics including the  fundamentals of UN procurement, contract and supplier relations, and  ethics in procurement. According to the Department of Management, a  joint procurement training program provided training to over 850 staff  responsible for procurement activities at various locations. Chief  procurement officers at 18 of the 20 field missions told us that their  mission had received procurement training recently.
However, while expressing appreciation for the training delivered in the  field, 13 of the 20 chief procurement officers we interviewed stated that  the UN had not established a comprehensive procurement training  program for procurement staff. For example, one chief procurement  officer observed that there are no benchmarks or minimum requirements  for training and that it is largely driven by the availability of funds. Some  chief procurement officers also emphasized to us that because of the high  turnover of field procurement staff, training must continue to be offered to  the field and must not be a one-time event. Several procurement chiefs  also discussed a need to expand training for other mission staff involved in  the procurement process—particularly requisitioners. In May 2008, the  UN approved a Procurement Division training framework document that  covers the division’s longer-term plans and objectives for procurement  training. The document outlines an objective of establishing a  comprehensive procurement training program that covers not only  procurement staff, but also requisitioning and contract management staff.  However, the document does not make clear how this training will be  funded.
section_title: Procurement Reforms Have also Focused on Vendor Management and the Procurement Manual, among Other Initiatives
paragraphs: The Procurement Division also has implemented reforms in other areas,  including updating its vendor management database and its procurement  manual. In 2006, we reported that the UN has had persistent difficulties in  maintaining effective rosters of qualified vendors and that it had not  updated its procurement manual since 2004 to reflect current UN  procurement policy. The Procurement Division has taken action on the  following reform areas:    Vendor Database Management. In August 2007, the Procurement Division  established a Vendor Registration and Management Team that has, among  its responsibilities, to manage and develop the UN’s database of vendors  determined to be qualified to do business with the organization.  Procurement division officials stated that the team has removed 5,000  companies with incomplete or out-of-date information from the database.  In addition, these officials stated that a pilot project is under way at  headquarters to streamline vendor registration requirements.
Procurement Manual. The Department of Field Support established a  working group composed of headquarters and field official that is focused  on reviewing and updating the procurement manual. A DFS official stated  that the working group’s recommendations are forwarded to the  Procurement Division for consideration and revision of the manual. The  UN updated the manual in November 2007 and again in June 2008.  According to the UN, the manual will continue to be regularly amended to  reflect best practices in public sector procurement. UN officials reported  that recent changes to the manual included a more detailed discussion of  the best value for money principle, among other issues.
Increase in HCC Threshold. In August 2008, the UN increased the  minimum threshold for procurement contracts required to be reviewed by  the Headquarters Committee on Contracts from $200,000 to $500,000. The  UN Office of Internal Oversight Services had recommended in 2003 that  this threshold be increased to $500,000 or $1 million in order to reduce the  committee’s workload and improve efficiency. Fourteen of the 20 chief  procurement officers we interviewed had told us that the financial  threshold for HCC’s review of procurement cases should be raised. Some  of these officials referred to rising prices since the $200,000 limit was  established or the decline in the value of the U.S. dollar vis-à-vis the Euro  as reasons for increasing the limit.
Procurement from Developing Countries. UN officials stated that the  organization has taken steps to increase procurement opportunities for  vendors from developing countries. In November 2007, the Secretariat  reported that procurement from developing country vendors increased  from 41 percent of total procurement in 2004 to 55 percent in 2006. To  increase procurement opportunities, the UN has conducted business  education seminars in various countries to increase awareness of potential  vendors about the UN procurement process.
Expanded Delegation of Authority for Local Procurement. To address  challenges to field procurement at mission start-up, the Procurement  Division has expanded a list of items for which missions have increased  procurement authority. These items are core requirements such as food,  water, and cleaning services, which could more easily be procured locally.  For these items, missions have a delegated procurement authority of $1  million, rather than their typical $200,000 limit for other goods and  services.
section_title: UN Has Not Resolved Several Continuing Concerns over Peacekeeping Procurement
paragraphs: Although the UN has made progress in implementing procurement reforms  from its 2006 agenda, it has not fully addressed several concerns  previously raised by GAO and others. These include the need to improve  career development options and conditions of service in the field in order  to attract and retain qualified procurement staff, and adapt headquarters- based procurement processes to the field environment. In addition, the UN  has not implemented other reforms, such as establishing an independent  bid protest mechanism.
subsections: section_title: Limited Career Development Opportunities Contribute to Difficulties in Attracting and Retaining Qualified Field Procurement Staff
paragraphs: The United Nations has not made progress in addressing previously raised  concerns over career development opportunities in order to attract and  retain staff needed for field procurement. In 2006 we reported that the UN  had not established a career path for professional advancement for  headquarters and peacekeeping procurement staff and that the  peacekeeping procurement workforce is adversely affected by  considerable staff turnover, especially in peacekeeping missions where  UN staff must operate in demanding, unpredictable, and dangerous  conditions. GAO’s Framework for Assessing the Acquisition Function at  Federal Agencies also states that critical success factors for acquiring,  developing and retaining talent are targeted investments in people and  utilizing human capital approaches targeted to meet organizational needs.
As discussed earlier, the Procurement Division has recently issued a  training framework document that includes an objective to support the  professional development of staff members in areas including staff  mobility and career advancement. However, 14 of the 20 chief  procurement officers we interviewed stated that the UN has not  established a formal career path for procurement staff. One chief  procurement officer, for example, told us that there is no clarity in this  area and little prospect for promotion and development, which has an  impact on staff performance. Another field official said that opportunities  for career development for field staff are “totally forgotten” by the UN and  that when a mission closes, the staff are left wondering what will happen  to them. The UN commented that several proposals to reform human  resources management are currently before the General Assembly,  including proposals on harmonizing conditions of service, streamlining  contractual arrangements, and establishing career peacekeepers.
Overall, the UN continues to have difficulties in retaining high-quality  procurement staff for sustained periods in peacekeeping missions. We  previously reported that about 23 percent of procurement staff positions  in peacekeeping missions were vacant in 2005, and DFS reported that the  vacancy rate for field procurement missions has remained at over 20  percent from 2006 to 2008. UN officials also told us that turnover among  field procurement staff has continued to hurt the continuity of their  operations and that peacekeeping missions continue to faces challenges in  deploying qualified, experienced procurement staff, especially during the  critical start-up phase. In addition, 19 of 20 chief procurement officers  expressed concerns to us about vacancies or understaffing among field  procurement staff. One chief procurement officer at a large mission told us  that when his mission started up there were only two temporary duty staff  assigned to the procurement function and that it took 2 years for the  section to reach 75 percent of its allocated staffing level. In discussing the  significance of field procurement vacancies, another chief procurement  officer told us that staff are pushed harder and burn out faster, and there is  a heightened risk that errors will be made.
section_title: Chief Procurement Officers Continue to Cite Difficulties in Applying UN Procurement Processes and Procedures in the Field
paragraphs: In our 2006 report, we noted that field procurement staff operate under  regulations that do not always reflect differences inherent to operating in  field locations and that UN procurement rules and processes are difficult  to apply in peacekeeping missions, according to UN officials, in particular  during start-up. Despite the UN’s efforts to improve field procurement,  chief procurement officers continue to note challenges in implementing  UN procurement policies and processes in the field environment. For  example, 17 of the 20 chief procurement officers we interviewed identified  difficulties in applying the UN’s vendor registration requirements in the  countries where the missions are operating. One official told us that the  requirement for potential vendors to provide bank statements is  impossible to meet in areas where there are no functioning banks.  Another procurement official stated that the UN vendor registration  system does not take into account these circumstances on the ground, and  if the missions strictly followed the rules and the paperwork requirements,  they would not be able to do business. As an example, this official told us  that to purchase water the mission has to find an individual with a  borehole. The UN official stated that this person may have a gun and a  donkey, but the only paper he handles for his business is cash. Officials in  the Department of Management’s Procurement Division stated that they  are working to streamline vendor registration requirements, including  reducing paperwork requirements for low-value contracts. The  Department of Management commented that the Procurement Division is  piloting a revised vendor registration process at UN headquarters that  requires less formal documentation and is intended to expedite vendor  registration.
Although the Procurement Division has revised and updated the  procurement manual in both of the last 2 years, 15 of the 20 chief  procurement officers we interviewed told us that the procurement manual  should be further revised to better reflect the field procurement  environment. Several chief procurement officers, for example, stated that  the manual should be shortened and simplified to more clearly distinguish  between policy and guidelines and that separate guidance for field  procurement should be established. Another official stated that when the  manual was written the operational requirements in field were not taken  into account. This official added that during a war, it is not always possible  to go through a long bidding process for fuel or food and that sometimes  time frames need to be condensed to meet local conditions. Procurement  division officials told us that a future revision and update of the manual  will include a more extensive revision to reflect field concerns.
section_title: Additional Procurement Reforms Have Yet to Be Implemented
paragraphs: In addition to the concerns raised above, several other elements of the  UN’s procurement reform agenda continue to be discussed within the  organization but have not yet been implemented. These include:  Independent Bid Protest. We previously reported that the UN had not  established an independent bid protest process, a widely endorsed control  mechanism that permits vendors to file complaints with an office or  official who is independent of the procurement process. Procurement  division officials stated that a procedure for bid protests has been agreed  to in principle but still needs to be formalized. In addition, these officials  stated that a pilot project for a bid protest system in UN headquarters is  planned to begin in September 2008.
Ethics Guidance. A 2006 UN report on procurement reform discussed  plans to issue specific guidance on ethics responsibilities for procurement  staff in 2006. However, according to Procurement Division officials, these  guidelines have not yet been finalized and issued. In March 2008, the  ACABQ expressed its concern over the delay in issuing the ethics  guidelines for procurement staff and reiterated that every effort should be  made to resolve outstanding issues and issue the guidance without further  delay. UN officials told us that an issue still to be resolved is whether the  formal adoption of the Procurement Division’s guidance on zero tolerance  for gifts for procurement staff will require a change to the UN staff  regulations.
Lead Agency Concept. The UN also has made little progress in establishing  a lead agency concept, which is intended to achieve savings and reduce  duplication of work for commonly procured products, such as office  supplies, information technology, and communications equipment. Under  the concept a UN organization with an established contract with favorable  terms and conditions would make purchases under the contract on behalf  of other organizations in the UN system. In its 2006 procurement reform  plan, the UN projected that implementation of the lead agency concept  would take 6 to 12 months. However, UN officials stated the General  Assembly has yet to approve a proposal to implement the concept.  According to the Department of Management, the lead agency concept  may be of limited application, given that a significant proportion of the UN  Secretariat’s procurement activities are in support of peacekeeping  activities and which may not be required by other UN agencies.
Risk Assessments of Field Procurement. In 2006, we reported that the UN  lacks a comprehensive risk assessment framework for procurement  activities. A UN official acknowledged that there has been little progress  to report on the establishment of a risk management system. Fifteen of the  20 chief procurement officers we interviewed also told us that they had  not received guidance or requirements from UN headquarters for  conducting risk assessments of procurement activities.  One official, for  example, stated that although there has been discussion within UN  headquarters about risk management, no formal guidance has been issued.  At the organizational level, the UN continues to develop and plan for the  roll-out of an overall risk assessment framework, known as the Enterprise  Risk Management (ERM) concept. The UN is planning to implement the  ERM by 2010.
section_title: UNLB Provides Important Communications and Logistical Support to Peacekeeping Missions, but Its Growth Has Raised Concerns among Member States
paragraphs: UNLB provides several important services to peacekeeping missions,  including the management of the UN’s worldwide communications and  information network and the rapid deployment of Strategic Deployment  Stocks (SDS). In response to peacekeeping mandates, UNLB’s  responsibilities have increased to incorporate other services, such as  training and aviation support. However, its growth over the past 5 to 6  years has raised concerns among UN member states about its expansion  and future roles in peacekeeping support.
subsections: section_title: UNLB Provides Important Communications and Logistical Support for Peacekeeping Operations and Administers Training and Other Services to Missions
paragraphs: UNLB supports peacekeeping missions through the provision of several  important services including the management of the UN’s global  communications network and the management and rapid deployment of  strategic equipment to the missions when they start. In addition to these  core functions, UNLB provides administrative support to six “tenant units”  hosted at the base that provide services such as training and aviation  support.  Services that UNLB provides to peacekeeping operations  include the following:    UNLB manages the UN worldwide communications hub that links operations  between UN headquarters, UN agencies, peacekeeping missions, and a  number of other field offices through e-mail, telephone, and  videoconferencing. UNLB’s Communications and Information Technology  Service serves more than 90,000 UN staff at headquarters and at field  operations. On a yearly basis, UNLB establishes 4,000 videoconferences,  processes 24 million inter-mission telephone calls, and routes 120 million e- mail messages involving headquarters and UN field missions. UNLB also  maintains the UN satellite communication network and the mobile  communication vehicles used in the field (as shown in fig. 4).
UNLB provides logistical support to peacekeeping missions that are  starting up by receiving, inspecting, maintaining, and issuing equipment  and supplies from SDS. SDS is composed of equipment considered vital  to missions at start-up, such as computers, generators, portable offices,  and vehicles. (See app. III for a list of the various components of SDS  managed by UNLB.) UNLB also receives goods and equipment that have  been procured directly from a manufacturer on behalf of peacekeeping  missions, inspects the goods, and refits the equipment for the missions’  needs, then ships them to missions. Finally, UNLB refurbishes used  equipment, such as vehicles and generators, for inclusion in the UN  Reserve stock for re-issuance to peacekeeping missions.
UNLB provides administrative support services to six “tenant units”  hosted at the base that provide various services and support. For example,  UNLB administers training courses, seminars, and pre-deployment  briefings at its on-site training facility. As part of the training function,  UNLB provides the civilian pre-deployment training that new or returning  UN staff enroll in before deploying to a mission. According to UN  officials, UNLB provided training to 2,000 staff in 2007, of which 400 were  preparing to deploy to peacekeeping missions. UNLB also provides  oversight of aviation safety for UNMIK, UNOMIG, and itself and develops  geospacial information for missions. UNLB’s Air Operations Centre  provides ground support to aircraft movements and also coordinates with  the UN’s World Food Program to provide aviation support for  humanitarian flights from Brindisi. The Geographic Information Services  (GIS) Center provides mapping and support services to peacekeeping  operations, in Darfur and Lebanon, for example.
section_title: UNLB Has Expanded Since 2002
paragraphs: UNLB has grown since 2002 in response to the growing number of  peacekeeping mandates and the Secretary-General’s decisions to place  additional services at UNLB. Since 2002, the UN Security Council has  mandated the deployment or expansion of eight peacekeeping operations  and authorized a four-fold increase in the number of UN peacekeepers.  From fiscal year 2002/2003 to fiscal year 200/2009, UNLB’s budget  increased from $14 million to over $45 million, and its staff levels  increased from 130 to 264 (see table 2). As shown in table 2, UNLB has  also been actively shipping SDS stocks to missions. Since 2002, when the  General Assembly approved the SDS, UNLB has supported 40 operations  with SDS shipments amounting to over $300 million. This includes  shipments to all new missions since 2004, the supply of operational and  security materials to existing missions, and ad hoc support to operations,  including the rotation of SDS.
UNLB’s expansion since 2002 includes the administration and  management of offices that support peacekeeping. In fiscal year 2006/2007,  UNLB initiated its training center and Regional Aviation Safety Office, and  the base’s fiscal year 2007/2008 budget initiated administrative support for  the Strategic Air Operations Center, GIS Center, and the Engineering  Design Unit. In 2008, UNLB will manage facilities for DPKO’s Standing  Police Unit.
In July 2008, the General Assembly approved UNLB’s 2008/2009 budget,  which includes an increase in staff. UNLB’s annual budget documents  include performance measures and indicators of achievement relating to  the management of SDS and other equipment. UNLB is meeting most of its  performance indicators, which include a near 100 percent availability of its  IT communications services to UN staff and a reduction in equipment  receipt and inspection times, but faces some challenges in shipping this  equipment to the missions. For example, UNLB has not met its goal of  processing shipments of equipment within a 17-day target period, due in  part to the time it takes to procure shipping contracts. While noting these  challenges, the ACABQ also has recognized UNLB’s achievements in  several areas, particularly its recent certifications in the International  Organization for Standardization (ISO) process for excellence in supply  inventory and information security management (ISO 27001).
section_title: General Assembly Requested UNLB to Clarify Its Role in Supporting Peacekeeping, in Light of Its Expansion
paragraphs: While the General Assembly approved UNLB’s 2008-2009 budget, it  endorsed the ACABQ’s previous recommendation that the Secretary- General report on the role and future development of the base. In 2007 and  2008, the General Assembly and the ACABQ reported that a longer-term  perspective was needed to clarify the concept and functions of UNLB, and  the basis for placing certain functions at the base. The General Assembly  endorsed the recommendation that the Secretary-General report in the  2009-2010 budget proposal on UNLB’s roles and future development.
The ACABQ also raised several specific issues about UNLB’s new services.  In 2007, and subsequently in 2008, the ACABQ requested analyses of the  function of the GIS Center and the Engineering Standardization and  Design Center, stressing the need for the GIS Center to clarify its goals,  resources and roles. For the Engineering Center, the ACABQ saw a need  for determining what efficiency and productivity gains would be achieved  by establishing the unit at UNLB. In 2008, the ACABQ also emphasized that  a forthcoming report on training strategy should provide an analysis of the  optimum venues and conditions for training, including training that may be  more effective if provided regionally. The ACABQ also recommended that  the Secretary-General clarify reporting lines between the “tenant units,”  UNLB, and UN headquarters.
In response to the ACABQ’s concerns, endorsed by the General Assembly,  the Secretary-General stated that support for establishing logistics  functions at UNLB would be based on analysis of projected costs and  overhead weighed against potential benefits, including savings and  productivity gains. To clarify UNLB’s future strategy, the Department of  Field Support and UNLB are developing a 5-year plan that is to be  incorporated into UNLB’s 2009-2010 budget. According to UNLB officials,  the plan is expected to show UNLB expansion possibilities as well as  refurbishment of infrastructure requirements for the next 5 years. They  said one factor that could change UNLB’s role is a decision by the General  Assembly to shift field procurement authority and responsibility to DFS.  According to the head of DFS’s Logistics Division, if DFS were given more  responsibility for field procurement, UNLB could play a greater role in  procuring for, managing, and monitoring the UN’s worldwide contracts for  goods and services.
section_title: Conclusion
paragraphs: Management reforms needed to cope with the dramatic growth of  peacekeeping are incomplete. Reforms to restructure peacekeeping  management and strengthen procurement are still being discussed by the  Secretariat and member states, but have not been resolved. In addition, the  UN is in the process of clarifying long-term plans for the UN logistics base.  Central to resolving these issues is a decision about which UN  department—the Department of Management or the Department of Field  Support—has authority and responsibility for peacekeeping procurement.  The UN Secretariat has been unable to reach agreement on the  management authority over field procurement, and as this decision  continues to be delayed, the divided authority between two departments  remains. UN officials and member states agree that this dual control over  procurement is inefficient and ineffective and continues to expose the  organization to risks.
In a 2006 report, we identified the UN’s divided organizational structure  for managing procurement as a vulnerability that leaves unclear which  department is accountable for problems in the UN’s field procurement  process. In that report, we recommended that the United States work with  other member states to encourage the Secretary-General to take steps  such as establishing clear and effective lines of authority between  headquarters and the field for UN procurement. In 2007, we further  reported that due to the time and attention given to the Secretary- General’s peacekeeping restructuring proposal, the General Assembly had  not considered several procurement reform issues, including establishing  lines of accountability, delegation of authority, and the responsibilities of  the Department of Management and the Department of Peacekeeping  Operations. A decision on this issue will provide direction to complete the  restructuring and resourcing of the Department of Field Support, clarify  lines of authority and responsibility for peacekeeping procurement, and  help clarify a longer-term strategy for the logistics base. However, the UN  has yet to resolve this issue.
Further progress in other procurement reform areas also is needed. While  the UN has taken steps to expand procurement training and update its  procurement manual, it has not made progress in establishing an  independent bid protest process and continues to face difficulties in  attracting and retaining field procurement staff.  Continued pressure by  the United States and other member states to move these and other  procurement reforms forward is needed to fully address concerns that we  raised in our 2006 and 2007 reports covering UN procurement.
section_title: Agency Comments and Our Evaluation
paragraphs: The Department of State and the UN provided written comments on a  draft of the report, which we have reprinted in appendixes IV and V. State  agreed with the main findings of the report and agreed that much work  remains in the UN’s ongoing process to restructure and strengthen its  organization for peacekeeping management. State commented that it  would draw upon our findings in its continuing discussions with the UN.  The UN commented that the report was a generally accurate reflection of  the current situation. State and the UN also provided technical comments,  which we addressed in the report as appropriate.
We are sending copies of this report to interested congressional  committees; the Secretaries of State and Defense; and the United Nations.  We will also provide copies to others on request. In addition, the report  will be available at no charge on the GAO Web site at http://www.gao.gov.
If you or your staffs have any questions about this report, please contact  me at (202) 512-9601 or melitot@gao.gov.  Contact points for our Offices of  Congressional Relations and Public Affairs may be found on the last page  of this report. GAO staff who made major contributions to this report are  listed in app. VI.
section_title: Appendix I: Objectives, Scope, and Methodology
paragraphs: Our review focused on three objectives related to the management of  peacekeeping operations: (1) the status of restructuring and strengthening  peacekeeping management, including the authority for field procurement;  (2) the status of reforms to address previously identified problems with  peacekeeping procurement; and (3) UN Logistics Base’s (UNLB) support  of peacekeeping operations and its recent expansion.
To assess the status of restructuring and strengthening peacekeeping  management, we reviewed UN documents, including the Secretary- General’s peacekeeping restructuring proposal, restructuring status  reports, Department of Peacekeeping Operations (DPKO) and Department  of Field Support (DFS) documents, General Assembly (GA) resolutions,  Advisory Committee on Administrative and Budgetary Questions (ACABQ)  reports, Office of Internal Oversight Services (OIOS) reports, and other UN  documents. We also reviewed previous GAO reports. We also used a  framework that is widely accepted in the international audit community  and has been adopted by leading accountability organizations, including  the International Organization of Supreme Audit Institutions, the U.S.  Office of Management and Budget, and GAO. This framework includes the  following elements of internal control: (1) the control environment, (2)  risk assessment, (3) control activities, (4) information and  communications, and (5) monitoring. In addition, we conducted interviews  at UN headquarters in New York, with officials from the Office of the  Secretary-General, DPKO, DFS, OIOS, and the Procurement Division (PD).  We also met with officials at the U.S. Mission to the United Nations and  with representatives of the ACABQ and with individual UN member states,  including leading contributors to the UN and developing countries. In  addition, we conducted structured interviews with chief procurement  officers at 20 field missions to discuss management authority for field  procurement and other issues related to the DPKO/DFS restructuring. For  more information on these structured interviews, see the detailed  description below. In Washington, D.C., we also met with State and  Department of Defense (DOD) officials.
To assess the status of peacekeeping procurement reforms, we reviewed  UN documents, including UN Secretariat reports on the status of  procurement reforms, PD and DFS documents, ACABQ reports, OIOS  reports, and other documents. We also collected data on UN field  procurement and on procurement staff vacancies. In addition, we  reviewed previous reports and the internationally accepted internal  control framework referred to above.
In addition, we conducted structured telephone interviews with chief  procurement officers at 20 current peacekeeping and special political  missions. For these structured interviews, we selected the population of 17  current peacekeeping missions, as well as the 3 special political missions  that are led by DPKO. Besides being led by DPKO, these special political  missions are also similar to the peacekeeping missions in that they have  their own delegated procurement authority from UN headquarters. We did  not include within our scope other special political missions that are not  led by DPKO or that do not have delegated procurement authority. We  selected the following 17 peacekeeping missions and 3 special political  missions for our interviews:  UNTSO – United Nations Truce Supervision Organization  UNMOGIP – United Nations Military Observer Group in India and    Pakistan  UNFICYP – United Nations Peacekeeping Force in Cyprus  UNDOF – United Nations Disengagement Observer Force  UNIFIL – United Nations Interim Force in Lebanon  MINURSO - United Nations Mission for the Referendum in Western  Sahara  UNOMIG - United Nations Observer Mission in Georgia  UNMIK - United Nations Interim Administration Mission in Kosovo  MONUC - United Nations Organization Mission in the Democratic  Republic of the Congo  UNMEE - United Nations Mission in Ethiopia and Eritrea  UNMIL - United Nations Mission in Liberia  UNOCI - United Nations Operation in Côte d’Ivoire  MINUSTAH - United Nations Stabilization Mission in Haiti  UNMIS - United Nations Mission in the Sudan  UNMIT - United Nations Integrated Mission in Timor-Leste  UNAMID - African Union-United Nations Hybrid operation in Darfur  MINURCAT - United Nations Mission in the Central African Republic and  Chad  Special Political Missions led by DPKO UNAMA – United Nations Mission in Afghanistan  UNIOSIL – United Nations Integrated Office in Sierra Leone  BINUB – United Nations Integrated Office in Burundi  Our structured interview included questions on procurement reforms and  processes, previous GAO findings, and issues relating to peacekeeping  management and UNLB. Structured interview development involved  multiple iterations in which questions were assessed methodologically for  coherence, completeness, and balance. Two methodologists provided  detailed input on the questions during the entire period of development. In  the final phase of interview development, we pre-tested our questions with  three of our initial respondents and refined our questions based on their  input.
To analyze the open-ended responses to our structured interview  questions, we first developed a set of summary statements to be used for  reporting purposes. These summary statements were based on an  inductive exercise involving an in-depth reading and comparison of  responses to questions under each of the eight recommendation categories  and on other issues. Second, we tested these statements on an initial set of  three interviews. This test involved two analysts separately coding all of  the summary statements for each of the three interviews. Most statements  were coded in one of three ways: (1) positive response – the interview  data corresponded to the statement; (2) negative response – the interview  data contradicted the statement; (3) non-response – no reference to the  statement was contained in the interview data. The two analysts met and  reconciled their responses; this effort also resulted in modifications to the  summary statements. Third, the two analysts used the revised statements  to separately code each of the remaining 17 interviews and then met to  reconcile any differences in coding. The level of correspondence between  the two analysts’ coding of the summary statements was very high, 89  percent. The final tallies of the analysis were obtained by counting, for  each statement, the number of positive, negative, and non-responses.
Summary results of this analysis across all eight recommendation areas  are provided in Appendix II.
To assess the status of procurement reforms, we also met with UN  officials in New York, including officials with the Office of the Secretary- General, the Procurement Division, DFS, DPKO, and OIOS. In addition, we  met with representatives of the U.S. mission to the United Nations and  with representatives from the ACABQ and individual member states. In  Washington, we also met with State and DOD officials.
To identify and examine the support UNLB provides to peacekeeping  missions, we reviewed UN documents and reports, including budget  documents, UNLB data and documents, DPKO Material Resource Plans  (MRP), ACABQ reports, OIOS reports, and General Assembly resolutions.   We determined that data from the UN's inventory management system are  sufficiently reliable for the purposes of our report, which is to support  findings concerning UNLB's support for peacekeeping operations and its  expansion.  We traveled to Rome and Brindisi, Italy, to meet with officials  from UNLB, the UN Humanitarian Response Depot (UNHRD), and  representatives of the U.S. Mission to the Rome-based UN organizations.  We met with UNLB officials to gain information on UNLB’s operations,  responsibilities related to the management of strategic deployment stocks  (SDS), and challenges with supporting peacekeeping operations. We met  with UNHRD and U.S. Mission officials to discuss other UN organizations’  logistics operations to support humanitarian missions. We also met with  officials with the U.S. Permanent Mission to the UN in New York, as well  as State officials and DOD officials in Washington, D.C. It was beyond the  scope of this review to conduct an analysis of the cost-effectiveness of  UNLB’s location in comparison to other locations.
We conducted this performance audit from August 2007 to September 2008  in accordance with generally accepted government auditing standards.  These standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.
section_title: Appendix II: Summary Results of GAO’s Survey of Chief Procurement Officers at UN Peacekeeping Missions
paragraphs: The following table provides of statements derived from our structured  telephone interviews with chief procurement officers (CPO) at 20 UN field  missions. The statements are organized by categories that correspond to  recommendations from our 2006 report on UN procurement. For each  statement, we list the number of respondents that provided answers  corresponding to the statement (Yes), the number of respondents  providing answers indicating the opposite view (No), and the number of  respondents who did not provide an answer or provided an answer that  was unclear. For a detailed description of our scope and methodology for  these structured interviews, see appendix I.
CPOs at peacekeeping missions identified challenges to conducting procurement activities in the field  Lines of authority and responsibility between headquarters and the field for UN procurement CPOs expressed confusion or uncertainties over the division of responsibilities between DFS and PD.
CPOs told us that lines of authority and responsibility for procurement between headquarters and the  field are clear.
CPOs expressed challenges or difficulties stemming from the division of responsibilities between DFS  and PD.
CPOs stated that overall responsibility for field procurement should be clarified between DFS and PD.
CPOs stated that DFS lacks the resources needed to sufficiently support field procurement.
CPOs stated that they feel like “orphans” or that they are often left on their own to make procurement  decisions in isolation.
Procurement training program and establishment of a formal career path for procurement officers CPOs told us that their mission had received procurement training recently.
CPOs stated that the UN has not established a comprehensive procurement training program for  procurement staff.
CPOs told us that the UN has not established a formal career path for procurement staff.
CPOs told us that their missions were not in a position to implement the Best Value for Money principle.
Functions and workload of the Headquarters Committee on Contracts (HCC)
CPOs discussed one or more challenges associated with the HCC’s review of procurement cases.
CPOs told us that the financial threshold for the HCC’s review of procurement cases should be raised.
Establishment of an independent bid protest process for UN vendors CPOs discussed concerns to take into account if a formal independent bid protest were to be established  for field missions.
CPOs told us that their missions have received few, if any, complaints from companies about the  outcomes of the bidding process.
UN procurement manual and ethics guidance CPOs stated that their staff refer to the UN Procurement Manual as a reference tool.
CPOs stated that the Procurement Manual should be revised to better reflect the field procurement  environment.
CPOs stated that UN headquarters sought their input on revisions to the Procurement Manual.
Process for assuring that the UN is conducting business with only qualified vendors CPOs identified difficulties in applying the UN’s vendor registration requirements in the countries where  the missions are operating.
CPOs told us that the UN’s vendor registration process was unclear or that it needed to be revised.
CPOs told us that UNHQ provides them with information on suspended or suspect vendors.
Risk assessment process providing reasonable assurance of systematic and comprehensive of  headquarters and field procurement CPOs stated that they have not received guidance or requirements from UN headquarters for conducting  risk assessments of procurement activities.
Monitoring of procurement activities by procurement managers CPOs described monitoring and oversight of field procurement (by UN headquarters) as limited.
CPOs expressed concerns to us about vacancies or understaffing among field procurement staff.
section_title: Appendix III: Components of Strategic Deployment Stocks (SDS)
paragraphs: Appendix III: Components of Strategic  Deployment Stocks (SDS)
SDS includes vehicles, communications equipment, and accommodation,  among other items. This equipment is stored and maintained at UNLB as a  reserve to be used for rapid deployment to newly starting missions. The  following table lists the categories of SDS managed and stored by UNLB.  The equipment is grouped into six sections: Engineering, Geographic  Information Systems (GIS), Medical, Supply, Communication and  Information Technology Services (CITS), and Transport.
Communication and  InformationTechnology Services (CITS)
Source; United Nations.
section_title: Appendix IV: Comments from the Department of State
section_title: Appendix V: Comments from the United Nations
section_title: Appendix VI: GAO Contact and Staff Acknowledgments
subsections: section_title: Staff Acknowledgments
paragraphs: In addition to the contact named above, Tet Miyabara, Assistant Director,  Jeremy Latimer, Sona Kalapura, Michelle Richman Su, Debbie Chung, and  David Dornisch made key contributions to this report. In addition, Ashley  Alley, Avrum Ashery, Jenny Chanley, Beth Hoffman Leon, Colleen Miller,  and Justin Monroe provided technical assistance.