11th Annual Conference on Government Procurement in the Americas Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 11th Annual Conference on Government Procurement in the Americas Dominican Republic 27th – 29th October 2015 Francis Burnett : Head, OECS/PPS 27 - 29 October 2015 Dominican Republic

Outline Mission Statement Background Essential features Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Outline Mission Statement Background Essential features Tendering/Contracting/Payment Benefits of pooled procurement Challenges Conclusion 27 - 29 October 2015 Dominican Republic

Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Atlantic ocean 27 - 29 October 2015 Dominican Republic

Regional pooled procurement of Pharmaceuticals Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Regional pooled procurement of Pharmaceuticals Antigua and Barbuda Anguilla British Virgin Islands Dominica Grenada Montserrat St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Martinique 10 OECS COUNTRIES 1 million people 27 - 29 October 2015 Dominican Republic

“Even if you stumble, you’re still moving forward” Inspiring quote “Even if you stumble, you’re still moving forward” Author : unknown 27- 29 October 2015 Dominican Republic

OECS/PPS MISSION STATEMENT Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) OECS/PPS MISSION STATEMENT “Our mission is to maximize healthcare services of the OECS countries by pooled procurement and management of pharmaceuticals and related medical supplies.” 27 - 29 October 2015 Dominican Republic

OECS/PPS VISION STATEMENT A pooled procurement agency that provides excellent pharmaceutical and medical supplies management service to the OECS. 27 - 29 October 2015 Dominican Republic 7

Supply chain management Selection Prescribing Forecasting Distribution Procurement Warehouse 27 - 29 October 2015 Dominican Republic

Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) “Medicines are the most cost-effective component of healthcare services.” WHO 27 – 29 October 2015 Dominican Republic

Background Access to essential medicines is a basic human right. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Background Access to essential medicines is a basic human right. Medicines are a major requirement for foreign exchange. Financial constraints have rendered it difficult for OECS Governments to adequately finance medicines 27 – 29 October 2015 Dominican Republic

Features Established in 1986 Permanent Secretariat OECS Economic Union Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service Features Established in 1986 Permanent Secretariat OECS Economic Union Country-based committees Payments through Central Bank Self-financing in 1989 with 11% surcharge Shared culture, language, ethnicity, currency Restricted International bid for 840 items with 50 suppliers 27 – 29 October 2015 Martinique Dominican Republic

OECS delegates attending Tenders Committee meeting in St OECS delegates attending Tenders Committee meeting in St. Lucia , May 2015 06/20/2018

Tendering/Ordering/Payment cycle Award contract Invite bids Collate forecasts ECCB pays suppliers Country receives Goods and inform PPS Country submits requisition to PPS Supplier ships directly to consignee PPS places order to supplier 27 - 29 October 2015 Dominican Republic

Electronic Procurement System [e-PPSS] Automatic aggregations of forecasts Online submission of requisition and POs Efficiency, fairness, transparency, accountability 27 - 29 October 2015 Dominican Republic

Benefits of pooled procurement Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Benefits of pooled procurement Economic Economies of scale, prices,20% Monopsony, bargaining power Fixed, common price for tender period 27 – 29 October 2015 Dominican Republic

Procurement Figure 1

Benefits of Pooled Procurement Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Benefits of Pooled Procurement Non- economic, value-added Enhanced quality assurance Coordinated training, research, M&E Regional cooperation and integration Harmonized formulary manual, STGs Sharing of information and experience Transparent and rational procurement , ICB Confidence-building with clients and suppliers 27 - 29 October 2015 Dominican Republic

Service level of prescribed medicines Procurement Service level of prescribed medicines Figure 2

OECS/PPS challenges Late payments Poor forecasting Managing donations Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) OECS/PPS challenges Late payments Poor forecasting Managing donations Purchasing outside the cartel Small countries and purchase orders Opposition and influence by suppliers 27 – 29 October 2015 Dominican Republic

Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Conclusion OECS/PPS pooled procurement has produced significant benefits for the Organization of Eastern Caribbean States (OECS) Member States. 27 – 29 October 2015 Dominican Republic

Thank you fburnett@oecs.org Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Thank you fburnett@oecs.org 27 - 29 October 2015 Dominican Republic