70% of UNDP' s procurement expenditures are spent for services. These could be executed by companies or individuals. At the country office level, the first step in selecting Suppliers is often market research, particularly if the product or service has not previously been procured. Business Units may source Suppliers through an expression of interest for commonly procured goods, registration of prospective Suppliers at UNGM and/or business seminars, where applicable.

Every country office establishes and manages its own supplier database. Once a roster of potential qualified Suppliers has been generated, Business Units evaluate each Supplier' s capabilities and resources to successfully perform on a contract, if awarded. The key parameters, which guide Supplier appraisal, include:

1. Technical capacity to deliver the goods and/or services as per schedule;
2. Financial strength, where the quick ratio is the most widely used test of a company's financial strength and liquidity.
3. The commitment of management to comply with UNDP General Terms and Conditions; and
4. Evidence of meeting national or international quality standards for the product offered; or evidence of national and international acceptance of its services;
5. Production capacity to provide after-sales-service for the goods or services provided;
6. Environmental compliance (i.e. ISO 14000 Certification) ; and
7. Participation in the UN Global Compact.