1. PROCUREMENT SUPPORT SERVICE WHO/UNICEF Technical Briefing Seminar on Essential Medicines Policies, November 1 st -5 th 2010 Mariatou Tala Jallow, Manager, Procurement Support Services Pharmaceutical Management Unit

2. PRESENTATION OUTLINE Rationale for Procurement Support –Why Global Fund is providing this service Voluntary Pooled Procurement (VPP) and Capacity Building (CBS)mechanism –How the services operates Update on Procurement Support activities –Achievements and challenges Accessing the VPP and CBS –How to access the service

3. Why Procurement Support? 4. VPP/ CBS - a Strategic Initiative / Board Decision 3.Strategies to improve grant performance 2. Implementation challenges -Procurement and supply management of Health products 1. Grant – Performance Based Funding Procurement Support Service

4. PROCUREMENT SUPPORT SERVICE - a coordinated approach to Procurement and Supply Chain Management VPP:  Simplifies Procurement Process Reduce timelines for ordering and deliveries Ensure compliance with Quality assurance policy Facilitates timely payment Meet the needs of Principal Recipients CBS/SCMA:  Addresses challenges in Supply Chain Management Through provision of Technical Support To strengthen existing capacities / systems Focus- Quantification, Storage, Distribution, Logistics Management Information activities In collaboration with development partners VPP:  Simplifies Procurement Process Reduce timelines for ordering and deliveries Ensure compliance with Quality assurance policy Facilitates timely payment Meet the needs of Principal Recipients CBS/SCMA:  Addresses challenges in Supply Chain Management Through provision of Technical Support To strengthen existing capacities / systems Focus- Quantification, Storage, Distribution, Logistics Management Information activities In collaboration with development partners Participating PRs Consulting /TA agencies Procurement Support Service The Global Fund ”PQR” Secretariat Data input VPP Procurement and Delivery of health products CBS/SCMA Technical support for in- country management and delivery of health products Procurement Agents Principal Recipients TA Services VPP Orders / Information Technical Support Providers Suppliers/ Manufacturers

5. VPP PROCUREMENT METHODS ARV / ACT –Quality Assurance policy –Maximum / ceiling prices –Solicitation of price quotation from all eligible suppliers –Price, delivery timelines, registration status, National patent laws LLIN –WHOPES recommended nets –Competitive tender as and when required –Price, delivery timelines, registration status Additional products (Drugs for OI, lab supplies, Diagnostics) –Variables: product ranges; sources; prices; quality –Lowest possible price – competitive process

6. CBS/ SCMA: Mechanism and Process Financing Contracting CBS / SCMA PR pays for service from grant Global Fund Direct Payment to service providers at request of PRs PRs choose from available services PRs manage implementation of service contracted Global Fund supports and monitors deliverables Identifying needs PRs identify CBS/SCMA needs (LFA assessments / reports of partners etc) Operational Model

7. Procurement Support Services Contracted agents –Procurement Services Agents Partnership for Supply Chain Management (PFSCM) Population Service International (PSI) –Capacity Building service providers John Snow Inc. (JSI) Iplus-solutions University Research Cooperation

8. PR participation 2009/2010 8 Source : VPP Data, 31 Aug 2010 42 Countries and 83 Grants

9. VPP Operational Phase – Orders (Qty: 62.4 million condoms ) 9 Source : VPP Data/ PFSCM Client Center/ PSI, 31 Aug 2010

10. 384 M: Confirmed Orders 10 Source : VPP Data/ PFSCM Client Center / PSI, 31 Aug 2010

11. Procurement Cycle * (Months) [1] Includes a very small proportion of non-core, non-ACT antimalarial medicines 11 Source : VPP Data/ PFSCM Client Center / PSI, 31 Aug 2010 *Procurement cycle: From the time procurement agent received request till date of delivery

12. Challenges Demand aggregation – irregular participation of PRs; Global Fund grant architecture (multiple grants); individual (multiple) PSM plans and non-coordinated procurement cycles; Emergency Orders - high proportion / inadequate procurement planning (40%); Expectations from VPP – quicker results and delivery times; resolution of long-standing PSM bottlenecks; Non-core products (Drugs for opportunistic infections; lab supplies) – low volume / low value, difficult to source; non-quality assurance standards; region specific 12

13. Achievements (Grant implementation) Procurement Support (VPP and CBS) – o Addresses procurement governance issues (Zambia, Djibouti) o Meets various needs of PRs (small countries) (Honduras, Swaziland) o Contribution to Universal Coverage for LLINs (Nigeria, Uganda) o Grant disbursements (Nigeria, Mozambique, Zambia) o Cost savings for countries: o over US$18 million for nets; o decrease in Procurement Service Agent fees (ARVs & ACTs) by 26% (pooling effect) o Facilitate grant signing and through CBS addresses CPs on PSM in grants (Nigeria, Liberia, Gambia) o Contribute to – regional training workshops 13

14. Achievements (Technical support ) Nigeria – RD 8 Malaria Grants –Condition Precedents(CPs) to address quantification, storage conditions, distribution system and LMIS addressed through Capacity Building/Supply Chain Management Assistance –Facilitated grant signing and disbursement Gambia – RD 8 HIV Grants CPs to address quantification, storage conditions, Logistics Management Information System (LMIS), Quality Assurance (QA) system and Procurement Supply Management (PSM) Unit Liberia– RD 7 HIV Grants –CPs to address, quantification, storage conditions, LMIS, QA system and PSM Unit capacity addressed through CBS/SCMA –Facilitated: grant disbursements to new PR (MOHSW) partner collaboration and leveraging of resources 14