UNICEF Autodisable Syringe Supply Prepared for SIGN / TECHNET Delhi, 27-30Aug 2001

UNICEF AD Procurement Backdrop of Public Procurement –Integrity –Client Service –Competition –Equal Treatment –Organizational Objectives Specific Objectives of AD Procurement –Ensuring an affordable product –Ensuring quality product –Providing adequate service levels –Engaging in financially sound contracts –Ensuring a supply capacity which meets the demand –During a changing market such as the AD syringe market, taking care that the level of change does not exceed a manageable level Contract Approval Body Office of Internal Audit

UNICEF AD Procurement (Long Term Arrangement) Recognize position as a buyer in AD market –What is our responsibility at the more macro-level? –What is our role as development organization? –But we don’t represent whole market Tender Requirements to meet Procurement Objectives (defined in Tender Documents) –Minimum Financial Requirements (review by independent review body in UNICEF) –WHO Specifications (design and prototype test) –Proven Production Quality –Account Management –Capacity –Price –Commercial Terms & Conditions

UNICEF A-D Purchases & Projections 10-11¢ 9-10¢ 7-8¢ 6-8¢ 5-7¢ 24 month tender period (millions)

UNICEF A-D Market Percent of UNICEF demand offered: Price Trend Demand Trend Price watch compared to demand:

“New” and Changing Market New potential producers User Preferences change Manufacturer Design Changes 11 technologies offered to UNICEF in 2001; of the 3 currently supplied to UNICEF, 3 potentially under change Steep, increasing demand curve majority of AD’s procurement through UNICEF support Supplementary Immunization Activities starting to be introduced for routine; GAVI has endorsed support View the market with a long term perspective secure a stable supply procurement methodology changes with market conditions

Supporting Change Track which AD syringes go to which countries –obtain feedback –be responsive on preferences –simplify number of designs/health worker training Support countries introducing AD’s with –Path “Safe Injection Training Manual” –sample syringes

Update on Current International Tender for 0.5ml AD Had clarification rounds with each bidder Recommended Awards are currently being reviewed by UNICEF Contract Approval Body –no manufacturers have been advised Expect to notify all bidders of results –Kick-Off meetings with successful bidders –Available for debrief meetings to all bidders Contract Awards will be posted on UNICEF Internet

Upcoming Issues Review of physically bundling of AD & Safety Boxes –demands from country offices AD Reconstitution Syringes –currently all disposable –pending specification for AD –sizes? 1ml, 2ml, 5ml, 10ml Current field user trial of BCG AD in India and Cambodia –final feedback expected September

Development: taking technology to market Aspects that differ from Private Market –complicated definition of “customer”: Gov’t, donor, user-health care, int’l agencies, industry the buyer vs. user difficult to define qty demand –working with developing country market –public procurement –funding cycles –little market segmentation / large market segmentation –some development subsidized by public sector grants Aspects that are similar to Private Market –product needs to be a good business model forecast, pricing, financials, due diligence on commercial issues –some make it to market, some don’t –barriers to entrance and exit –risks