Safe Injection Equipment Industry Consultation 28th – 29th March 2017 Outline of Tender Document for Safe Injection Equipment for 2018 - 2019 Rob Matthews, HTC

Outline of the Tender Document Overview of Evaluation Objective of Session Outline of the Tender Document Overview of Evaluation

Overview of Tender Document 5 Main Sections 1. Purpose The objectives of the tender 2. Background Procurement Principles Forecasting Methodologies Background Information relevant to understand the requirement Information highlighting changes or specific points 3. Instruction to proposers How to make and submit a proposal Information on how UNICEF will handle proposals, including definition of mandatory requirements Information on how UNICEF will debrief and share result of tender outcome.

Overview of Tender Document 4. Terms and Conditions (list not exclusive) Mandatory technical and quality requirements Mandatory financial and commercial requirements, such as; UNGM registration Financial Requirements / Approval by UNICEF Supplier Evaluation Unit Shipping and Packaging Instructions, Primary Containers, weight and volumes, Commercial Requirements; currency, Incoterm Account Management, past performance, affordable prices, monthly Allocations, Emergency response preparedness Special terms and conditions; ethical clauses General Terms and Conditions 5. Evaluation of proposals and basis for awards Methodology, process and criteria

Proposals from Proposers Proposers are invited to submit a comprehensive proposal Responsive to forecasted demand quantities for each product The type of product being proposed, and specifications Unit price per product Annual and monthly production for each product Alternative SIE products Comply with all MANDATORY REQUIREMENTS Comply with the INSTRUCTIONS TO PROPOSERS and information requested Provide explanations to any request for exceptions or clarification on the RFP PROPOSAL FORM Proposal/s will be reviewed technically and commercially. UNICEF will send clarification requests to proposers if needed.

Proposal Evaluation Process Review of Mandatory Requirements Technical requirements Financial Review by UNICEF Supplier Evaluation Unit (SEU) Compliance to UNICEF General Terms and Conditions Quantitative Review of Proposal Products offered, quantities, price, delivery schedule, lead-times, ability to maintain buffer stock, volume and packaging requirements Qualitative Review of Proposal Proven experience and past performance Ability to perform account management / good communication On-time delivery performance

Financial Evaluation SEU Supplier Registration and Evaluation Supplier must pass the financial evaluation conducted by UNICEF Supplier Evaluation Unit. If a supplier has not undergone this review, an application must be submitted through United Nations Global Marketplace (UNGM) website at http://www.ungm.org, under http://www.ungm.org/NewSupplierRegistration.aspx. Instructions are provided on the website. Proposers are requested to submit the UNGM application number, along with the documentation listed below, to UNICEF Supply Division, attention Supplier Evaluation Unit, A copy of company's legal registration A complete copy of company's latest audited financial statements, with comparative figures for the previous year. This includes, but is not limited to, the following: The report from the auditor (signed by the auditors) The balance sheet, The income statements, and notes thereto

Mandatory Requirement Identification Review of Mandatory Requirements: Identify the minimum requirements to be considered for further review. Mandatory requirements will be indicated throughout the RFP by the words “mandatory”, “shall”, “must” or “will” in regard to obligations on the part of the proposer. Bids that do not meet the mandatory requirements may not be eligible for award.

Mandatory Requirements Compliance with Instructions to Proposers Compliance with Financial Requirement UNICEF General Terms and Conditions Compliance with the new packing and shipping requirements Technical and Quality assurance compliance Fixed and firm pricing unless alternative offer Currency of offer (EURO or USD)

Review of Quantitative and Qualitative Requirements Price: DAP, FCA and landed cost price Payment Terms Responsiveness to the RFP document Delivery times Offered production quantity Gross weight and volume Acceptance to keep a rolling buffer stock (min 10% of awarded quantities) Account management abilities Past performance on account management and on-time delivery. On-time delivery is measured by a) ability to meet agreed upon delivery dates; and b) ability to meet stated monthly allocations Other information required and included in the evaluation: Proposers relationship with the manufacturer of the offered products Validity of Bid – minimum 120 days Country of origin

Landed Cost Evaluation Proposers will be asked to submit their prices based on (i) FCA nearest port, and (ii) DAP Copenhagen Warehouse Incoterms. The estimated sea shipment cost for the seven identified ports and for Copenhagen (for DAP comparison purposes) will be provided by UNICEF contracted freight forwarders and will be added to the FCA prices. Freight rates are provided per 40’ft and 20’ ft container and allocated to a freight cost per unit based on the number of pieces per container, which is added to the unit cost (FCA) to obtain the landed cost. The landed cost for 40’ containers for the FCA port to the 7 destinations is the basis of the land cost evaluation The commercial evaluation will compare these prices and a recommended award will take into account the landed costs. The landed cost will contribute to seventy (70) percent of the commercial scoring.

Inclusion of Sustainable Procurement (SP) Targets; and inclusion of Sustainability in the Evaluation Criteria. (Supporting Objective 6) The comparative volumes of the technical acceptable products will be reviewed as well as the overall weight of the products. These two components both impact on The volume of product to be shipped around the world and associated environmental impact The weight of the product (and packaging) that needs to be disposed of Both elements are under the control of the producer in terms of design. Sustainability score will make up thirty (30) percent of the overall commercial score.

The Commercial Scoring of submissions will be a combination of landed cost pricing and sustainability elements per product. The total amount of points allocated for the landed cost component is 70.  The maximum number of points (i.e. 70 points) will be assigned to the lowest landed cost proposal. All other landed cost proposals will receive points in inverse proportion to the lowest landed cost The total amount of points allocated for the sustainability component is 30.  The maximum number of points (i.e. 15 points) will be assigned to the lowest weight and to the lowest volume proposal to factor the transportation of the product and the disposal of the product. All other weight and volume proposals will receive points in inverse proportion to the lowest weight/ volume The weight and volume used in the calculation will include the product as well as the pro rata packaging of the product. The final commercial scoring will be the sum of the three individual scores for the landed cost, transport factor and disposal factor. The resultant outcomes would then be ranked from the highest to the lowest scoring outcome which would be the basis of the review alongside all other factors.

Suppliers Offers Suppliers pricing strategies have evolved over time from fixed price offers for tender quantities to a number of combinations. The prior tender round illustrated a greater complexity in the composition of the offers than in prior tender rounds, including Fixed price offers per year for all offered volumes; Stepped price offers based on total volumes awarded by year; Stepped price offers based on total volumes awarded for the tender period; Stepped pricing for ranges of volumes awarded, with the reduced price level applicable to the incremental increase in volume; Additional minimum overall award quantities across all offered products. The conditions of the offers impact on the evaluation.

Evaluation Considerations The overall programmatic objective is to improve injection safety. Ensuring an uninterrupted sustainable supply of affordable quality and technically approved products is the overarching procurement objective. Acknowledge the tension between the different strategic objectives. Proposed approach is to build on the prior approach, maintaining gains achieved The final award recommendation will be based upon how the combination of offers received can best meet the procurement objectives.

Evaluation of Proposals – Multiple Criteria Considered Clear elements indicated in the Tender document and Industry Consultation.. ………Question more relates to what offers we receive……

Proposed Procurement Framework The proposed approach is to maintain the current approach of competitive tendering, using a consolidated RFP, leading into Target bound Long Term Arrangements (LTAs) for AD syringes and Safety boxes - to enable bidders to submit proposals leveraging their comparative advantage to better meet the objectives of the tender; Time bound LTAs covering the immunization demand for the associated disposable and RUP syringes used for the reconstitution of vaccines established with the same supplier base awarded for the AD syringes and Safety boxes Time bound LTAs for the RUPs, Disposable syringes and Needles for kit packing, - based on the low volumes and value and highly variable demand levels (driven by Health kit demand).

Proposed Procurement Framework

Discussion Thank you!