PROCUREMENT SUPPORT SERVICE

WHO/UNICEF Technical Briefing Seminar on Essential Medicines Policies,

November 1st -5th 2010

Mariatou Tala Jallow, Manager, Procurement Support Services

Pharmaceutical Management Unit

PRESENTATION OUTLINE• Rationale for Procurement Support

– Why Global Fund is providing this service

• Voluntary Pooled Procurement (VPP) and Capacity Building (CBS)mechanism – How the services operates

• Update on Procurement Support activities – Achievements and challenges

• Accessing the VPP and CBS – How to access the service

Why Procurement Support?

4. VPP/ CBS - a Strategic Initiative / Board Decision

3.Strategies to improve grant performance

2. Implementation challenges -Procurement and supply management of Health products

1. Grant – Performance Based Funding

Procurement Support Service

PROCUREMENT SUPPORT SERVICE - a coordinated approach to Procurement and Supply Chain Management

VPP:Simplifies Procurement Process

• Reduce timelines for ordering and deliveries

• Ensure compliance with Quality assurance policy

• Facilitates timely payment

• Meet the needs of Principal Recipients

CBS/SCMA: Addresses challenges in Supply Chain Management

• Through provision of Technical Support

• To strengthen existing capacities / systems

• Focus- Quantification, Storage, Distribution, Logistics Management Information activities

• In collaboration with development partners

VPP:Simplifies Procurement Process

• Reduce timelines for ordering and deliveries

• Ensure compliance with Quality assurance policy

• Facilitates timely payment

• Meet the needs of Principal Recipients

CBS/SCMA: Addresses challenges in Supply Chain Management

• Through provision of Technical Support

• To strengthen existing capacities / systems

• Focus- Quantification, Storage, Distribution, Logistics Management Information activities

• In collaboration with development partners

Participating PRs

Consulting /TA agencies

Procurement Support Service

The Global Fund

”PQR”

Secretariat

Data input

VPP Procurement

and Delivery of health products

CBS/SCMATechnical

support for in-country

management and delivery of health

products

Procurement Agents

PrincipalRecipients

TA Services

VPP Orders / Information

Technical Support Providers

Suppliers/ Manufacturers

VPP PROCUREMENT METHODS

• ARV / ACT– Quality Assurance policy– Maximum / ceiling prices– Solicitation of price quotation from all eligible suppliers– Price, delivery timelines, registration status, National patent laws

• LLIN– WHOPES recommended nets– Competitive tender as and when required– Price, delivery timelines, registration status

• Additional products (Drugs for OI, lab supplies, Diagnostics)– Variables: product ranges; sources; prices; quality– Lowest possible price – competitive process

CBS/ SCMA: Mechanism and Process

Financing

Contracting CBS / SCMA

• PR pays for service from grant• Global Fund Direct Payment to service providers at

request of PRs

• PRs choose from available services • PRs manage implementation of service contracted• Global Fund supports and monitors deliverables

Identifying needs

• PRs identify CBS/SCMA needs (LFA assessments / reports of partners etc)

Op

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Procurement Support Services

• Contracted agents– Procurement Services Agents

• Partnership for Supply Chain Management (PFSCM)

• Population Service International (PSI)

– Capacity Building service providers• John Snow Inc. (JSI)• Iplus-solutions• University Research Cooperation

PR participation 2009/2010

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Source : VPP Data, 31 Aug 2010

42 Countries and 83 Grants

VPP Operational Phase – Orders

(Qty: 62.4 million condoms )

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Source : VPP Data/ PFSCM Client Center/ PSI, 31 Aug 2010

384 M: Confirmed Orders

10Source : VPP Data/ PFSCM Client Center / PSI, 31 Aug 2010

Country Anti Malarials ARVs Condoms Diagnostics Additional PharmaBed nets Grand TotalNigeria 8,523,032 157,631,797 166,154,830Ivory Coast 45,029,607 45,029,607Indonesia 196,549 324,251 2,427,844 39,045,033 41,993,677Uganda 40,702,918 40,702,918Mozambique 520,865 15,824,423 4,767,323 3,867,712 752,584 25,732,907Zambia 422,627 8,534,730 4,652,392 2,873,237 1,192,239 17,675,224Haiti 3,270,054 1,570,043 746,473 5,586,570Brazil 4,990,348 4,990,348Swaziland 2,871,539 794,079 1,138,075 4,803,693Niger 1,763,326 117,684 858,764 311,892 1,234,820 4,286,486Cambodia 3,602,578 46,348 64,639 3,713,565Bangladesh 53,831 167,695 2,481,075 2,702,601Nicaragua 422,892 504,574 606,312 470,890 129,698 2,134,366Papua New Guinea 403,197 1,580,670 1,983,868Comoros 111,947 1,847,979 1,959,926Laos 263,067 394,221 86,278 1,186,855 1,930,420Gambia 435,136 51,109 830,339 345,115 1,661,698Cameroon 1,076,886 555,027 1,631,913Malawi 1,508,762 1,508,762Timor Leste 176,208 39,310 648,632 615,464 1,479,614Togo 630,962 509,201 221,393 1,361,556Guinea Bissau 502,943 113,981 126,623 743,546Congo 599,686 599,686Cape Verde 155,458 375,626 47,756 578,839Georgia 497,259 12,637 509,896Honduras 198,428 110,933 153,182 21,042 16,292 499,877Djibouti 290,001 148,299 32,235 470,536Philippines 40,008 30,682 248,879 319,569Yemen 66,064 231,098 297,162Thailand 277,585 277,585Dominican Republic 224,800 224,800Liberia 214,267 214,267Colombia 212,647 212,647Armenia 99,840 30,732 130,572Macedonia 22,582 52,254 74,836China 28,070 28,070Mongolia 5,075 3,557 8,633Grand Total 10,969,999 40,671,133 827,618 21,562,030 11,964,705 298,219,582 384,215,068

Procurement Cycle* (Months)

[1] Includes a very small proportion of non-core, non-ACT antimalarial medicines

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Source : VPP Data/ PFSCM Client Center / PSI, 31 Aug 2010*Procurement cycle: From the time procurement agent received request till date of delivery

Challenges• Demand aggregation – irregular participation of PRs; Global Fund

grant architecture (multiple grants); individual (multiple) PSM plans and non-coordinated procurement cycles;

• Emergency Orders - high proportion / inadequate procurement planning (40%);

• Expectations from VPP – quicker results and delivery times; resolution of long-standing PSM bottlenecks;

• Non-core products (Drugs for opportunistic infections; lab supplies) – low volume / low value, difficult to source; non-quality assurance standards; region specific

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Achievements (Grant implementation)

Procurement Support (VPP and CBS) –oAddresses procurement governance issues (Zambia, Djibouti)oMeets various needs of PRs (small countries) (Honduras, Swaziland)oContribution to Universal Coverage for LLINs (Nigeria, Uganda)oGrant disbursements (Nigeria, Mozambique, Zambia)oCost savings for countries:

o over US$18 million for nets; o decrease in Procurement Service Agent fees (ARVs & ACTs) by 26% (pooling

effect)

oFacilitate grant signing and through CBS addresses CPs on PSM in grants (Nigeria, Liberia, Gambia)oContribute to – regional training workshops

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Achievements (Technical support)

• Nigeria – RD 8 Malaria Grants– Condition Precedents(CPs) to address quantification, storage

conditions, distribution system and LMIS addressed through Capacity Building/Supply Chain Management Assistance

– Facilitated grant signing and disbursement

• Gambia – RD 8 HIV GrantsCPs to address quantification, storage conditions, Logistics

Management Information System (LMIS), Quality Assurance (QA) system and Procurement Supply Management (PSM) Unit

• Liberia– RD 7 HIV Grants– CPs to address, quantification, storage conditions, LMIS, QA system

and PSM Unit capacity addressed through CBS/SCMA – Facilitated:

• grant disbursements to new PR (MOHSW)• partner collaboration and leveraging of resources

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