PROCUREMENT SUPPORT SERVICE

1. 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

2. 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

3. Why Procurement Support? 4. VPP/ CBS - a Strategic Initiative / Board Decision 1. Grant – Performance Based Funding Procurement Support Service 2. Implementation challenges -Procurement and supply management of Health products 3.Strategies to improve grant performance

4. TA Services VPP Orders / Information 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 The Global Fund Procurement Support Service Secretariat ”PQR” Data input • Participating PRs Principal Recipients VPP Procurement and Delivery of health products CBS/SCMA Technical support for in-country management and delivery of health products Technical Support Providers Procurement Agents Suppliers/ Manufacturers Consulting /TA agencies

5. 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

6. CBS/ SCMA: Mechanism and Process Identifying needs • PRs identify CBS/SCMA needs (LFA assessments / reports of partners etc) Contracting CBS / SCMA • PRs choose from available services • PRs manage implementation of service contracted • Global Fund supports and monitors deliverables Operational Model Financing • PR pays for service from grant • Global Fund Direct Payment to service providers at request of PRs

7. 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

8. PR participation 2009/2010 42 Countries and 83 Grants Source : VPP Data, 31 Aug 2010

9. VPP Operational Phase – Orders (Qty: 62.4 million condoms ) Source : VPP Data/ PFSCM Client Center/ PSI, 31 Aug 2010

10. 384 M: Confirmed Orders Source : VPP Data/ PFSCM Client Center / PSI, 31 Aug 2010

11. Procurement Cycle* (Months) *Procurement cycle: From the time procurement agent received request till date of delivery Source : VPP Data/ PFSCM Client Center / PSI, 31 Aug 2010 [1] Includes a very small proportion of non-core, non-ACT antimalarial medicines

12. 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

13. Achievements (Grant implementation) Procurement Support (VPP and CBS) – • Addresses procurement governance issues (Zambia, Djibouti) • Meets various needs of PRs (small countries) (Honduras, Swaziland) • Contribution to Universal Coverage for LLINs (Nigeria, Uganda) • Grant disbursements (Nigeria, Mozambique, Zambia) • Cost savings for countries: • over US$18 million for nets; • decrease in Procurement Service Agent fees (ARVs & ACTs) by 26% (pooling effect) • Facilitate grant signing and through CBS addresses CPs on PSM in grants (Nigeria, Liberia, Gambia) • Contribute to – regional training workshops

14. 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 Grants CPs 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