M ODULE 5 PART 1: Introduction to Consolidation of Pharmaceutical and Health Product Management (PHPM) in the SSF Context GLOBAL FUND GRANT CONSOLIDATION WORKSHOP DATE

PART I PSM OVERVIEW: Procurement Supply Management (PSM) Definitions Why is PSM important? GF approach to PSM Overview of PSM Planning PSM Consolidation Scenarios Key PSM Consolidation Documents Key Messages 2

DEFINITIONS OF KEY TERMS Procurement and supply Management All management activities for health products, to include quality assurance, in accordance with national and international laws Health Products and Equipment Pharmaceutical products, diagnostics technologies and supplies Non- health Products All products other than “ health products”, including vehicles, computers, construction materials, and services - including technical assistance 3

WHY IS PROCUREMENT AND SUPPLY CHAIN MANAGEMENT IMPORTANT? Approximately 45% of grant funds are budgeted for the procurement of drugs and other commodities In many countries, the procurement process is a major cause of delays in grant implementation Limited PSM capacity and systems in many countries The procurement process must improve for the Global Fund to achieve its mission and for programs to achieve their objectives 4

THE GLOBAL FUND’S APPROACH TO PSM Principles and minimum standards, not detailed procedures Build upon existing systems Distinction between health and non-health products Expanded definition of Procurement : How health products arrive in country and what happens to them subsequently. PR is responsible for all implementation & monitoring of PSM activities (whether directly implemented or sub-contracted). CCM responsible for oversight of PSM activities 5

PARTICIPANT TEAZER ! How many of us have been involved in developing PSM section of proposal and PSM plans? What were your experiences? 6

OVERVIEW OF PSM PLANNING Traditional PSM Plan divided into 3 parts Part 1 : Institutional capacity of the PR PR to demonstrate its capacity to manage PSM activities Part 2: Elements of the PSM cycle Description of how each cycle activity will be carried out by the PR o Part 3 o Annex 1a: List of products to be procured- Pharmaceuticals o Annex 1b: List of products to be procured – Other health and non- health products o NB : SEE HANDOUTS 7

PART 1 – PR INSTITUTIONAL CAPACITY 8

PART 2-ELEMENTS OF PSM CYCLE 9

CURRENT PSM PLAN APPROVAL PROCESS Proposal Approved Global Fund Approval & Disbursements Implementation of program in line with Grant Agreement PSM Plan per grant LFA PHPM Assessment Revise plan based on LFA Assessments and Global Fund recommendations

EXAMPLE: COUNTRY X PSM PLANS PORTFOLIO - T HE 8 PSM PLANS IN COUNTRY X ARE NOT HARMONISED - E ACH OF THE PSM PLANS GOES THROUGH THE APPROVAL PROCESS LFA PHPM Assessme nt Approved Proposals LFA PHPM Assessme nt Mal R8 PSM Plan TB R4 PSM Plan TB R6 PSM Plan HIV R3 PSM Plan Mal R5 PSM Plan HIV R6 PSM Plan HIV R7 PSM Plan Mal R3 PSM Plan

CONSOLIDATING PSM PLANS

GENERAL GUIDELINES FOR CONSOLIDATING PSM PLANS Scenarios Case 1 : All grants to be consolidated into SSF have an approved PSM Plan Case 2 : One or more grants to be consolidated into SSF does not have an approved PSM Plan Case 3 : One or more grants to be consolidated into SSF does not have an approved PSM Plan but there is a recent LFA/GF assessed Pharmaceutical and Health Product Management (PHPM) Country Profile Case 4 : One or more grants to be consolidated into SSF does not have an approved PSM Plan and the PHPM Country Profile is being developed / implemented 13

Case 1: All grants to be consolidated into SSF have an approved PSM Plan Straightforward consolidation of information already provided in the approved PSM Plan(s) Mathematically aligned (addition of quantities and costs from the grants being consolidated) PR submits the consolidated PSM Plan Complete list of health products under the consolidated agreement Review by LFA No need for review by the PMAS Team 14

Case 2: One or more grants to be consolidated into SSF does not have an approved PSM Plan PR to submit a revised/consolidated PSM Plan PSM Plan to include all information previously included into the formally approved PSM Plan PLUS any information on activities and health products included under the new grant Need for review by the LFA and PMAS Team IN BOTH CASES, THE CURRENT PSM PLAN TEMPLATE COULD BE USED 15

Case 3: One or more grants to be consolidated does not have an approved PSM plan but there is an LFA/GF assessed pharmaceutical and health product management (PHPM) country profile PHPM country profile must not be older than 12 months PR to submit a Procurement Plan using the new Template Plan to include all information previously included in the formally approved PSM Plan PLUS any information on activities and health products under the new grant In both cases, info relevant for Tables 1-7 Desk-review by LFA 16

Case 4: One or more grants to be consolidated into SSF does not have an approved PSM Plan and the PHPM Country Profile is being developed / implemented PR to submit a PSM Plan if Country Profile cannot be completed and assessed on time Plan to include all information previously included in the formally approved PSM Plan PLUS any information on activities and health products included in the new grant Need for review by the LFA and PMAS Team 17

CONSOLIDATED PSM PLAN APPROVAL PROCESS Global Fund Approval & Disbursements Implementation of program in line with Grant Agreement Consolidated PSM plan of two or more grants with at least one “new” or “not yet approved LFA PHPM Assessment and country review Revise plan based on LFA Assessments and country review

KEY PSM DOCUMENTS & FORMS FOR CONSOLIDATION Documents: Guide to the GF’s policies on PSM PSM plans for the respective consolidated grants Procurement plan for the respective grants Consolidated perfomance framework Consolidated work plan and detailed budget Forms : PSM Plan template front sheet International drug price index Annex 1a Annex 1b

GUIDE TO THE GF’S POLICIES ON PSM Outlines all Global Fund’s PSM Policies Procure quality assured products At the lowest price Adhere to National and International Laws Conduct procurement processes in a transparent and competitive manner. Based on the Global Fund Board decisions Outlines what PR’s need to do.

PSM Plan Front Sheet 21

PSM Cycle: Forecasting procedures and Procurement planning Annex 1a: List of products to be procured (prices and quantities may be estimates) List all pharmaceuticals to be procured under this grant. Use Year 3 columns only if applicable. Product Category ProductStrengthEstimate d unit cost (US$) Year 1 Estimated quantity Year 1 Total cost (US$) Year 2 Estimated quantity Year 2 Total cost (US$) Year 3 Estimated quantity Year 3 Total cost (US$) Procuremen t to be conducted by [1] Procuremen t method [2] ARVs Anti-TB All other pharmaceuticals --NA-- TOTAL  Annex 1(a) 22

PSM Cycle: Forecasting procedures and Procurement planning Annex 1b: List of products to be procured (prices and quantities may be estimates) List the products and services to be procured under this grant. Use Year 3 columns only if applicable. Prod. Cat.ProductEstimated unit cost (US$) [1] [1] Year 1 Estimated quantity Year 1 Total cost (US$) Year 2 Estimated quantity Year 2 Total cost (US$) Year 3 Estimated quantity Year 3 Total cost (US$) Procurement to be conducted by [2] [2] Health Products Rapid diagnostic test All other diagnostic products, supplies, equipment Bed nets (LLINs, other) All other health products --NA-- Health Equipment Various health equipments --NA-- Services [3] [3] MIS systems--NA-- QA strengthening --NA-- Other [4] [4] --NA-- Non-Health Products All non-health products and services [5] [5] --NA-- TOTAL  Annex 1(b) 23

KEY MESSAGES Use of the PHPM Country Profile is replacing the PSM Plan in future grants For GC, implementation arrangements in consolidated PSM Plan should be harmonized with individual PSM plans or have plans to manage transition process In consolidated grants, lists of health products and quantities (Annexes 1a&b) should be aligned to the PF targets, work plan and budget 24

FOR MORE INFORMATIONContact Global Fund Pharmaceutical Management Advisory Services Team UNAIDS Technical Support Facility EA & SA WHO EPM 25

ACKNOWLEDGEMENTS Grant Management Solutions The Global Fund Secretariat UNAIDS Technical Support Facility The AIDS Alliance AIDSPAN 26

GROUP EXERCISES 27