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VOLUNTARY POOLED PROCUREMENT AND CAPACITY BUILDING SERVICES

The Global Fund mandates the establishment and implementation of a voluntary pooled procurement mechanism for principle recipients. This aims to provide lower prices, improve transparency, ensure quality products, decrease lead time, and eliminate problems with disbursement and payment. The identified product categories are antiretrovirals and malaria-related products. Participation is voluntary for most recipients, but mandatory for those with inadequate procurement capacity. Capacity building services are offered for procurement and supply chain management. Consultation with various entities is ongoing.

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VOLUNTARY POOLED PROCUREMENT AND CAPACITY BUILDING SERVICES

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  1. VOLUNTARY POOLED PROCUREMENT AND CAPACITY BUILDING SERVICES MICK MATTHEWS CIVIL SOCIETY OFFICER THE GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS AND MALARIA

  2. THE BOARD OF THE GLOBAL FUND HAS MANDATED THE GLOBAL FUND • SECRETARIAT TO ESTABLISH AND IMPLEMENT A VOLUNTARY POOLED • PROCUREMENT MECHANISM FOR GLOBAL FUND PRINCIPLE • RECIPIENTS.TO BE LAUNCHED IN JANUARY 2009

  3. VOLUNTARY POOLED PROCUREMENT AIMS TO: • PROVIDE LOWER PRICES FOR CRITICAL PRODUCTS • IMPROVE TRANSPARENCY IN PROCUREMENT PROCESSES AND PRICES • ENSURE THE PURCHASE OF QUALITY ASSURED PRODUCTS • DECREASE PROCUREMENT AND DELIVERY LEAD TIME • PROVIDE AUTOMATIC COMPLIANCE WITH GF PROCUREMENT GUIDELINES • ELIMINATE PROBLEMS AND DELAYS IN DISBURSEMENT AND PAYMENTS FOR PROCUREMENT THROUGH DIRECT PAYMENT MECHANISM • ELIMINATE PROBLEMS WITH DATA REPORTING REQUIREMENTS THROUGH DIRECT DATA REPORTING FROM THE PROCUREMENT AGENT

  4. FOUR IDENTIFIED PRODUCT CATEGORIES: • FIRST LINE ANTIRETROVIRALS • SECOND LINE ANTIRETROVIRALS • ARTEMISININ COMBINATION THERAPY (ACT) MALARIA • LONG LASTING BEDNETS (LLINs) MALARIA

  5. GUIDING PRINCIPALS • PR PARTICIPATION WILL BE VOLUNTARY, EXCEPT FOR PRs THAT IN THE DETERMINATION OF THE SECRETARIAT, THROUGH THE FUND PORTFOLIO MANAGER, HAVE DEMONSTRATED INADEQUATE CAPACITY TO PROCURE EFFECTIVELY AND EFFICIENTLY. IN SUCH INSTANCES THE SECRETARIAT, IF APPROPRIATE, MAY REQUIRE THE PR TO PROCURE THROUGH THE POOLED SERVICE • POOLED PROCUREMENT WILL BE OUTSOURCED WITH THE • SELECTION OF PROCUREMENT AGENT(S) THROUGH A • TRANSPARENT AND COMPETITIVE TENDER PROCESS. THE • POOLED PROCUREMENT SERVICE WILL BE MANAGED AS PER CONTRACTED TERMS ESTABLISHED BY THE SECRETARIAT.

  6. WHO IS ELIGIBLE? • THIS SYSTEM IS OPEN TO GLOBAL FUND PRINCIPLE RECIPIENTS (PRs) ONLY. • IT IS VOLUNTARY FOR PRs WHO MAY CHOOSE TO “OPT IN” OR “OPT OUT”. • FOR A MUCH SMALLER GROUP OF PRs PARTICIPATION IN THE POOLED PROCUREMENT PROCESS WILL BE MANDATORY.

  7. THE PROCESS • THE GLOBAL FUND WILL SELECT ONE OR MORE PROCUREMENT AGENTS. THIS WILL BE DONE THROUGH AN OPEN AND TRANSPARENT TENDER PROCESS. • THE POOLED PROCUREMENT WILL BE A GLOBAL PROCESS, OPEN TO ALL PRs.

  8. CAPACITY BUILDING SERVICES • CAPACITY BUILDING SERVICES AND SUPPLY CHANGE MANAGEMENT ASSISTANCE WILL BE OFFERED TO COUNTRIES WHERE A PR IS UTILISING VOLUNTARY POOLED PROCUREMENT TO ADDRESS THE WEAKNESSES IN THE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT SYSTEMS

  9. CAPACITY BUILDING SERVICES • THE AREAS THAT HAVE TENTATIVELY BEEN IDENTIFIED FOR CAPACITY BUILDING AND MANAGEMENT ASSISTANCE ARE: • QUANTIFICATION AND FORECASTING • PROCUREMENT PLANNING • INVENTORY CONTROL • DISTRIBUTION • LOGISTICS MANAGEMENT

  10. CONSULTATION • THE GLOBAL FUND IS CONSULTING WITH A NUMBER OF OTHER ENTITIES SUCH AS THE GLOBAL DRUG FACILITY, WHO, AMDS, TCM AND OTHERS . • CIVIL SOCIETY ORGANISATIONS OR INDIVIDUALS IN THE REGION WISH TO MAKE A CONTRIBUTION SEND THEM TO: MICK.MATTHEWS@THEGLOBALFUND.ORG

  11. FINALLY • THE GLOBAL FUND WILL HIRE • ADDITIONAL STAFF, FINALISE THE IMPLEMENTATION PLAN, SELECT THE • PRODUCTS FOR VPP AND IDENTIFY AREAS FOR CAPACITY BUILDING • SERVICES, SELECT THE PROVIDERS OF BOTH SERVICES AND IDENTIFY • PARTICIPATING PRs, ALL READY FOR LAUNCHING IN JANUARY 2009.

  12. THANKYOU • MICK MATTHEWS • MICK.MATTHEWS@THEGLOBALFUND.ORG • TEL: 00 41 22 791 5991

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