procurement support services voluntary pooled procurement & capacity building services technical...
TRANSCRIPT
PROCUREMENT SUPPORT SERVICES
Voluntary Pooled Procurement & Capacity Building Services
Technical Briefing Seminar November 18, 2009
4. Board decision to implement VPP/ CBS as a Strategic Initiative
3. Discussion on strategies to improve grant performance
2. Major Challenges -Procurement and supply management of Health products
1. Secretariat monitoring grant performance
Procurement Support Service
Why Procurement Support?
Voluntary Pooled Procurement & Capacity Building Services
• Board Decision 2007– Strategic Initiative to improve Grant Performance
• Objectives – Leverage Global Fund Purchasing Power
• Improve Market outcomes – Prices, quality, supply, sustainability• Address Procurement bottlenecks / challenges – procurement process
and delivery outcomes – To improve in-country capacity for effective, efficient & sustainable
supply chain systems
• Model – Pooled Procurement – short-term strategy– Supply Chain Management support – long-term strategy
PROCUREMENT SUPPORT SERVICES - A Coordinated Approach to Procurement and Supply Chain Management Support
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 the management and delivery of health
products in country
Procurement Agents
PrincipalRecipients
TA Services
VPP Orders / Information
CBS/SCMA Providers
Suppliers/ Manufacturers
Procurement Support Services
• VPP and CBS/SCMA – Voluntary
• PRs can access either VPP or CBS or both
• Procurement Support Service Team facilitates this process through mails, tele-conference or country visits (if required)
• Registration of PRs for participation is through FPMs
VPP Model
1. VPP Products• Core products: 1st and 2nd Line ARVs; ACTS; LLINs• Additional products: Drugs for Opportunistic Infections;
Lab. Equipment and Reagents; Diagnostic Tests; Condoms; KO Tabs
2. Establishment of pool of suppliers (Negotiation)• Product eligibility (Prequalification)
• ARVs / ACTs – Global Fund Quality Assurance Policy • LLINs – WHOPES recommendation
• Negotiation outcome – Agreement on prices, terms and conditions (term sheet)• ARVs / ACTs – Maximum / ceiling prices • LLINs – Tender bid / fixed prices
VPP – Model And Process
3. Procurement Agents:• Partnership For Supply Chain Management (PFSCM)
– ARVs, ACTs & additional products
• Population Service International (PSI)– LLINs
4. Operational Process• Aggregate demands, process orders / deliveries• Selection of manufacturers – competitive process • Process payments to manufacturers / suppliers• Input data in Price Quality Reporting system
VPP meeting the needs of PRs
• Low procurement volumes /unable to obtain competitive pricing
• Limited capabilities / service of Procurement Agent required
• Procurement challenges - lead time from suppliers, Compliance with the GF Quality Assurance policy, competitive and transparent process
• Challenges on scaling up treatment and prevention
VPP Simplify Procurement Process – Multiple Steps Eliminated
PR receives
and checks drugs
PR makes
payment
PRdistributes
drugs
Patient receives
drugs
PR collects
consumption
information
PR reports
results to TGF
Approval of Country
Proposal for TGF Grant
PR prepares PSM Plan specifying health
products & quantities
TGF disburses funds to
PR
Plan Submission
For TGF Assessment and Approval
PR launches procurement
process
Suppliers submit
bids
PR evaluates bids
and awards supply contract
PR places order for drugs and monitors
order status
PR reconciles
needsand funds available
Indicate VPP participation VPP Starts
VPP Services
• Operational – Orders being processed
• Procurement Service Fees• LLINs – 2.5% FOB for delivery at Port of Entry
3.0% FOB for delivery to State / Regional level
• ACTs – 6.5% FOB price• ARVs – 6.2% FOB price• Additional products:
– Drugs for Opportunistic Infections 9%
– Test kits (Malaria; HIV) 6%
– Laboratory equipment and supplies 8.5%
– Condoms 9%
VPP Participation
• Confirmed participation 30– Number of grants 55
• In discussion 18– Number of grants 31
• Capacity Building Services– 1 concluded with contracts– 12 in discussions
• Consultation – confirm areas for intervention
• Development of work plans
• Facilitation of Contracting with TA Providers
Country Participation & Grants
Cluster Country HIV Malaria Cluster Country HIV Malaria
EA Uganda WCA Cameroon
EAP Indonesia Congo
Lao PDR Guinea
Papua New Guinea Guinea-Bissau
Philippines Nigeria
Timor Leste The Gambia
EECA Armenia Togo
Macedonia LAC Brazil
MENA Niger Dominican Republic
SA Swaziland Guyana
Zambia Haiti
SWA Bangladesh Nicaragua
VPP Procurement of Nets
• Orders processed (Individual tenders)• Nigeria 3. million Nets - delivered• Indonesia 1,1million – ready for shipment • Bangladesh 0.5million – in progress• Swaziland 91,000 – in progress
(Total 5 million nets)
• Orders in the pipeline (consolidated tender issued)• Nigeria 27million • Uganda 7.3million• Indonesia 4.9 million (Total 39.2 million nets)
• Orders in the pipeline (consolidated tender issued)• Zambia 215,000 • Timor Este 97,500• Nicaragua 30,000 (Total 342,500 nets)
• Next planned tender– pending confirmation • Estimated 10 million nets (2 countries)
Update Status – ARVs and ACTs
• ARVs– Macedonia, Haiti, Lao, Armenia, Zambia, Guinea
Bissau, Mozambique
• ACTs– Bangladesh, Cameroon, Guinea, Indonesia, Lao PDR,
Mozambique, Nigeria, Papua New Guinea, Timor Leste, Zambia
CBS/SCMA - Model & Process
Areas:–Quantification / Forecasting–Procurement Planning–Inventory / Logistics Management
Types:–Training (groups / individuals / short-term / long-term)–Technical Support (Short-term / long-term / transfer of
skills (I do-you watch/ we do/ you do-I watch scenario) –Developing Systems / Tools
CBS/ SCMA: Mechanism and Process
Financing
Contracting CBS / SCMA
• PR pays for service from grant• Reallocation of funds in existing grants and/or • Inclusion in future grant proposals
• Direct Payment to service providers
• PRs choose from available services • Global Fund facilitate implementation of services• Global Fund monitor service provided
Identifying needs
• PRs identify CBS/SCMA needs (LFA assessments / reports of partners etc)
Op
era
tio
na
l Mo
de
l
CBS / SCMA Process
• Technical Support Services – Framework contracts with Service Provider
• John Snow Inc. (JSI)• i+solutions• University Research Co. (URC)
– Collaboration with Technical Partners • Access existing pool of service providers• Coordinate activities at country level
• Registration and consultative process ongoing
Accessing VPP and CBS/SCMA
• Indicate during grant proposal / negotiation• Confirm participation through a registration letter (FPM)
– Indicate grant, product category, time frame for VPP or CBS
• Indicate on PSM Plan – VPP for procurement services– CBS requirements and budget– Ensure PSM Plan approval
• Procurement of health products – Submit list of products for procurement
• Adequate information on product specifications, quantities and reasonable schedule for delivery
– Request for direct disbursement of fund to Procurement Agent
Accessing VPP and CBS/SCMA
• Capacity building service / Technical Support– Define Scope of work and deliverables– Selection of service provider– Request for direct disbursement of fund to Procurement Agent
• Direct communication to Procurement Agent or CBS/SCMA Service Provider is facilitated throughout the process
• Procurement Support Service Team monitors the process and performance of the Procurement Agent / Service provider