1. 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
October 2015
Dominican Republic

2. 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
October 2015
Dominican Republic

3. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS)
Atlantic ocean
October 2015
Dominican Republic

4. 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
October 2015
Dominican Republic

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

6. 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.”
October 2015
Dominican Republic

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

8. Supply chain management Selection Prescribing Forecasting Distribution
Procurement
Warehouse
October 2015
Dominican Republic

9. 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

10. 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

11. 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

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

13. 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
October 2015
Dominican Republic

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

15. 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

16. Procurement
Figure 1

17. 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
October 2015
Dominican Republic

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

19. 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

20. 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

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