Procurement and Supply Management of China Global Fund Program

1. Procurement and Supply Management of China Global Fund Program

2. Structure and Responsibility • Procurement Department • Responsible for establishing procurement and supply management system • In the preparation of procurement plans • Organize and implement the procurement plan. • Finance Department • Responsible for the budget confirm, the funds payment and accounting management. • Audit Department • Responsible for the budget and contract audit.

3. Structure and Responsibility • National Program Office • Responsible for making the procurement plans and, if necessary, invite relevant departments involved in the preparation of the plan. • After approval of the procurement plans, submitted it to Procurement Department. • Submit procurement notice to the procurement department according to the project progress. • To help complete distribute, inspection and transfer things. • Provincial level and the following level • Receive and inspect the product • Distribute and use • Inventory manage

4. Structure and Responsibility • Law firms • review purchase contract • Give advise and help handle the law-related events. • The Monitor and Supervision Office of China CDC • Full supervision of the whole progress of procurement.

5. Procurement Method • Government procurements system • Government Purchase System will make a catalog once a season by pre-public bidding. Including IT product and vehicles • National program office Choose product from the catalog directly • Procurement department sign the purchase contract • Public marketingprocurements • Open tender bidding, competitive negotiations, RFQ, a single-source procurement, and online bidding. 。 • The main method the program used is open tender.

6. procurement notice National Program Office Supervision Implementation Expert, NPO, Pro. Dept. Specifications MOH, LFA, PR Office Lawyer, NPO, Monitor, Pro. Dept Implementation of procurement Bidding agency Confirm supplier Lawyer NPO, Pro. Dept Sign the contract Audit Department Implementation of contract Pro. Dept Provincial level PR Director Distribute and inspection Pro. Dept Payment, Recording Country and township level Transfer account Finance Department Procurement process

7. Procurement Department Management Information feedback Inspection and account transfer documents Distribution Inventory information M&E Annual Fixed assets check Provincial level Management Inventory information Inspection & stock Warehouses Distribution & using Management End user End user End user Management Process

8. Challenges • Registration • health product with GF funds should be pre-qualified by WHO or Approved by Stringent Regulatory Authority • According to Chinese law, any health product used in China should register in SFDA before distribution. • Here comes an issue. Some international pharmaceutics doesn’t register in China and most of Chinese manufactories don’t get the pre-qualification from WHO. China PR now face challenges while purchase these kinds of products. • Plan Adjustment • During the PSM plan implement practice, there's always something to be flexible adjusted. For example, budget transfer between projects, and product adjustment according to particular demand from various province. PR should report these kind of adjustment to LFA and GF. That will take some time.

9. Thanks