AGENDA Joint UNICEF/Global Fund Pre-Tender Meeting UNICEF Supply Division, Copenhagen, Denmark, August 20 th, 2013

Transcription

1 AGENDA Joint UNICEF/Global Fund Pre-Tender Meeting UNICEF Supply Division, Copenhagen, Denmark, August 20 th, 2013 Time Agenda Item Presenter Registration of participants Ewelina Paduch, UNICEF SD Opening Remarks and Introduction of Participants Global Efforts to Achieve and Maintain LLIN Coverage Charlotte Thaarup, UNICEF SD Shanelle Hall, Director, UNICEF SD Christopher Game, Chief Procurement Officer, Global Fund Melanie Renshaw, Chief Technical Advisor, African Leaders Malaria Alliance Coffee Break Joint Forecast and Highlights of the Collaboration Joint presentation UNICEF/Global Fund/DFID LLIN Technical Standards, Durability and Innovations Lunch Global Fund s LLIN Strategy: Tender Process and Future Plans Coffee Break UNICEF s LLIN Strategy: Tender Process and Future Plans Rajpal S. Yadav, Scientist, WHOPES Abraham Peter Mnzava, Coordinator, Vector Control Unit, Global Malaria Programme, WHO Mariatou Tala Jallow, Head, Direct Procurement, Sourcing & Supply, Global Fund Fabienne Jouberton, Lead, Malaria Portfolio, Sourcing & Supply, Global Fund Helene Moller, Chief, Health Technology Centre, UNICEF SD Elena Trajkovska, Contracts Specialist, UNICEF SD Q&A Chair: Melanie Renshaw, Chief Technical Advisor, African Leaders Malaria Alliance Conclusions and Closure Shanelle Hall, Director, UNICEF SD Completion of the meeting evaluation form by industry Christopher Game, Chief Procurement Officer, Global Fund Ewelina Paduch, UNICEF SD Charlotte Thaarup, UNICEF SD The Global Fund to Fight AIDS, Tuberculosis and Malaria Chemin de Blandonnet Vernier Geneva, Switzerland Tel: United Nations Children s Fund Supply Division Oceanvej Copenhagen Ø, Denmark Tel:

2 List of participants Joint UNICEF/Global Fund Pre-Tender Meeting UNICEF Supply Division, Copenhagen, Denmark, August 20th, 2013 Name of participants Organization 1 Egon Weinmueller BASF 2 Robert Racz BASF 3 Annette Braee Bestnet Europe Ltd 4 Johnny Mortensen Bestnet Europe Ltd 5 Trine Sig Bestnet Europe Ltd 6 Kalpesh Shah Net Health 7 Nick Brown Net Health 8 Atsuko Hirooka Sumitomo 9 Adam Flynn Sumitomo 10 Akira Taniuchi Sumitomo 11 Rune Bosselmann Tana Netting FZ-LLC 12 Francesca Cocozza Tana Netting FZ-LLC 13 Thomas Damsbo Soerensen Vestergaard Frandsen 14 Caroline Desrousseaux Vestergaard Frandsen 15 Mikkel Vestergaard Vestergaard Frandsen 16 Henriette F. Lauridsen Vestergaard Frandsen 17 Andy Butenhoff Disease Control Technologies 18 Anand Samiappan V.K.A. Polymers India 19 Ramanathan Natarajan V.K.A. Polymers India 20 Gerhard Hesse Bayer S.A.S. 21 Li Chenbiao Tianjin Yorkool International Trading Co. Ltd. 22 Zhou Zhao Tianjin Yorkool International Trading Co. Ltd. 23 Tsutomu Kuse Kuse Lace Co Japan 24 Kazuko Steffensen Kuse Lace Co Japan 25 M. Sivasamy Marappan Shobikaa Impex Private Limited 26 Rod Flinn Shobikaa Impex Private Limited 27 Chris Guy USAID/ Deliver Project 28 Alexis Leonard USAID/ Deliver Project 30 Michael Dunnery DFID 31 Selma Bernardi IFRC / AMP 32 Rajpal S. Yadav WHO, WHOPES 33 Abraham Peter Mnzava WHO, Global Malaria Programme 34 Melanie Renshaw ALMA 35 Alan Court Office of the Special Envoy for Malaria 36 Magali Babaley RBM Secretariat 37 Vanessa Klaassen IDA Foundation 38 Wendy Eggen IDA Foundation 39 Christopher Game The Global Fund 40 Mariatou Tala Jallow The Global Fund 41 Steve Hornsby The Global Fund 42 Kenneth Piercy The Global Fund 43 Orion Yeandel The Global Fund 44 Cyril Khamsi Clinton Health Access 45 Shanelle Hall UNICEF SD 46 Helene Moller UNICEF SD 47 Jolanta Wozniak UNICEF SD 48 Rudolf Schwenk UNICEF SD 49 Elena Trajkovska UNICEF SD 50 Etleva Kadilli UNICEF SD 51 Jane Morley UNICEF SD 52 Gemma Orta-Martinez UNICEF SD 53 Jonathan Mitchell Weiss UNICEF SD

3 54 Aadrian Sullivan UNICEF SD 55 Ibrahima Ndiaye UNICEF SD 56 Irene Ayako UNICEF SD 57 Stuart Turner UNICEF SD 58 Joane Howe UNICEF SD 59 Maria Ieroianni UNICEF SD

4 Global Efforts to Achieve and Maintain LLIN Coverage

5 GF Malaria Resources for Africa $2,000,000,000 $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $ Round Round Round Round TFM INFM

6 GF Malaria Resources for malaria GF commitment to LLINs shown through interim new funding modality monies HWG preparations for the new funding modality rolling out in October for 10 priority countries HWG will support all countries with their new funding modality proposals in early 2014 If US$15 billion replenishment is successful in December malaria should have approximately US$1.5 billion annually through the GF meaning enhanced funding predictability moving forward New funding modality concept note approach will allow other partners to contribute to the overall country identified priorities - including DFID, PMI, UNICEF and others

7 GF Malaria Resources for malaria $2,000,000,000 $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 projected secured $600,000,000 $400,000,000 $200,000,000 $ Round Round Round Round TFM INFM

8 LLIN deliveries to Africa

9 LLIN Gap Analysis Africa underlying assumptions For the majority of countries campaigns are planned on a 3 year basis with routine distribution through EPI and ANC to infants and Pregnant women Some countries are piloting other delivery mechanisms e.g school based distribution in Tanzania, community based distribution in South Sudan Net loss calculations are included in the coverage calculations - 8% loss during year 1, 20% during year 2 and 50% during year 3

10 LLIN Gap Analysis Africa

11 LLIN Gap Analysis Africa

12 Tracking funding and operational coverage through the ALMA scorecard

13 Country considerations Building country and regional level capacity for PSM in the mid to long term Ensuring that commodities resourced from other sources including from national governments are included in global forecasts and tenders and do not move to the back of a long queue Ensuring that LLIN deliveries are organised to fit in with the timing of replacement campaigns and rainy seasons not just biggest first. Continue to explore local manufacture of essential health commodities including introduction of innovative and more durable LLINs

14 Conclusion LLINs have contributed significantly to the successes seen in malaria control to date and remain a priority intervention moving forward With a successful GF replenishment and continued support from DFID, PMI and others we are confident that funding gaps will be filled and will result in a smoothing out of funding flows The joint forecast and global tenders should smooth the peaks and troughs of LLIN deliveries moving forward

15 Joint Forecast and Highlights of the Collaboration 1

16 Collaborative working on procurement and management of LLINs The Global Fund and UNICEF identified in April 2013 the opportunity to collaborate on the procurement of LLINs to maximise impact and access. DFID and PMI also identified value in collaboration. Joint working to develop and implement. Preparations/ presentations at The Global Fund s LLIN supplier conference Sharing of information on forecasts, specifications, market intelligence and dynamics Joint Pre Tender briefing meeting Constructive dialog and development of a shared plan and a collaboration roadmap sustained beyond tenders Supplier benefits: better insight into a more consistent volume over a longer term, harmonized specifications, the ability to better leverage the cost base, and improved ability to plan and schedule production. 2

17 The Global Fund and UNICEF appropriate level, achievable, future platform Joint Pre-Tender Briefing / preparation Shared and consolidated demand forecasts (with overlaps eliminated) Rationalising / harmonising: specifications quality standards Incoterms / physical delivery.whilst reflecting appropriate country ownership Coordination between phased separate tenders: Consultation to establish timing Mutual visibility of evaluation process Sharing information on allocation algorithms & order processes Establishment of post-contract coordinating mechanisms to minimise excessive fluctuations, manage demand, and support resolution of conflicting demands. Mechanism will include: on-going collaboration and information sharing - on market intelligence and dynamics, treatment of net performance and new product introduction regular review and sharing of forecasts; liaising with organisations such as the RBM Malaria Harmonization Group 3

18 DFID supports our partners the Global Fund and UNICEF in this joint approach which aligns to our policy priorities. Specifics are: Support through direct and indirect funding Participation in the Pre-Tender meeting Sharing of country-level forecasts, taking into account the mutuality in some areas with both The Global Fund and UNICEF Encouraging the development of the supply base including African based manufacturers Ability to use the baseline prices and associated terms submitted by suppliers in response to The Global Fund tender for procurements of LLIN funded by DFID On-going participation and information sharing 4

19 PMI / USAID Agreed intention to participate in this joint approach at high, collaborative level and are supportive of the principles Specifics are: Participation in the Pre-Tender meeting Sharing of country-level forecasts Potential ability to use the baseline prices and associated terms submitted by suppliers in response to The Global Fund tender On-going participation and information sharing whilst recognising organisational and USG specific policies that need to be followed 5

20 2014 LLIN forecasted volumes by funding channel These forecasts are non-binding and uncommitted. 6

21 2014 LLIN forecasted volumes by procurement channel total forecast 189m LLINs 7

22 Demand management example from VPP 8

23 LN Technical Standards, Durability and New products Dr Rajpal Yadav WHOPES Dept. of Control of Neglected Tropical Diseases Dr Abraham Mnzava Vector Control Unit Global Malaria Programme

24 WHO definition of an LN An LN is a factory-treated mosquito net that is expected to retain its biological activity for: a minimum number of standard washes under laboratory conditions ( = 20) a minimum period of use under field conditions (= 3 years) LLIN or LN?

25 Criteria for efficacy of an LN After 20 washes, the netting must produce, in: Cone bioassays 80% mortality and/or 95% knockdown Tunnel test 80% mortality and/or 90% blood-feeding inhibition Efficacy criteria cannot be used for quality control Hence the use of physico-chemical criteria

26 Specifications of an LN 1. Product description Denier Filament: mono-/multi-filament Polymer type: polyester, polyethylene, polypropylene,... Treatment technology Coating onto filaments Incorporated into filaments

27 2. Active ingredient.. specifications of an LN Identity test usually a CIPAC method AI Content Be from a WHO compliant source g AI/kg ±25% (tolerance at ± 20 0 C) mg AI/m 2 dose to remain constant, irrespective of denier Isomer ratio (range), if required Retention/release index % values, within a range Varies for different polymer/treatment technologies Content of synergist (g/kg ±25%) Retention/release index of synergist Relevant impurities (of manufacture or storage)

28 3. Physical properties.. specifications of an LN Netting mesh size Average no. and lowest value of complete holes/cm 2 Dimensional stability of netting to washing Not >5% shrinkage/expansion in either dimensions Bursting strength (fabric & seams) Minimum & average b.s. (in kpa)

29 4. Storage stability.. specifications of an LN After storage at elevated temperature, LN shall comply with: Dimensional stability Bursting strength Wash resistance index Isomer ratio, if required Any by-products (relevant impurities) Temperature conditions: Temp ± 2 0 C Weeks

30 What tests are not part of the specifications, yet important? Flammability test 16CFR part 1610 (45 0 slanted test) results to be presented on the package EN 1102 (vertical test) Mass of netting (GSM) Weight in g/m 2 Specify GSM range for quality control

31 LNs in pipeline LNs Type Phase Brand Manufacturer I Aka Net LN Kuse Lace Co., Japan Panda Net 2.0 Life Ideas Textiles, China MiraNet LN A to Z Textile Mills, Tanzania Olyset Duo LN Sumitomo Chemical, Japan Kit for long-lasting treatment of mosquito nets II Yahe LN Fujian Yamei Industry, China III DawaPlus 2.0 LN Tana Netting, UAE Duranet LN Shobikaa Impex, India LifeNet LN Bayer CropScience, France Netprotect LN Intelligent Insect Control, France Olyset Plus LN Sumitomo Chemical, Japan PermaNet 3.0 LN Vestergaard Frandsen, Switzerland ICON MAXX Syngenta, Switzerland

32 Durability & flammability Textile tests Fabric weight per unit area (EN ISO 12127) Bursting strength (EN ISO ) Bursting strength on seams (EN ISO ) Tear strength, length and width (EN ISO ) Tensile strength, length and width, with and without hooks (ISO ) Flammability 16 CFR part 1610 and EN 1102 Survivorship in operational use

33 WHOPES Guidelines: Efficacy assessment

34 Manual on specifications Provides the standard process, unified requirements and procedures, harmonized definitions and nomenclature, technical guidelines and standards applicable to pesticides for use in agriculture and public health. Developed through the FAO/WHO Joint Meeting on Pesticide Specifications (JMPS) through an open consultative process, including national programmes and representation by industry at JMPS meetings.

35

36 LLIN Durability Recommendations from WHO Technical Expert Group on Malaria Vector Control

37 Malaria Policy Advisory Committee (MPAC) Provides independent strategic advice and technical input to WHO for the development of policies related to malaria control and elimination

38 Malaria Policy Advisory Committee ERG a Evidence Review Groups ERG c Standing TEG Malaria Vector Control Standing TEG Surveillance, Monitoring & Evaluation ERG b Standing TEG Chemotherapy Standing TEG Drug Resistance & Containment WHO COs SAGE MPAC WHO DG WHO malaria policy recommendations and guidelines MoH and NMCPs Other WHO departments JTEG (with IVB) WHO GMP Secretariat WHO ROs RBM: Secretariat, WGs and SRNs VCAG (with NTD)

39 Technical Expert Group for Malaria Vector Control 3 to 5 July, 2013

40 Estimating functional survival of long-lasting insecticidal nets from field data Proportional Hole Index to classify nets into servicable and RRR (rapid replacement required ) Insecticide retention no need to be included Two 75 denier polyester nets, both 3 years old one serviceable, one "Triple R" (Photos - Albert Kilian)

41 LLIN Durability Recognition by VCTEG Measurement of LLIN durability in operational conditions using standardized methods is important Better anticipation of the replacement timing of nets in the field Encourage innovation, leading ultimately towards LLINs with a lower cost per year of protection

42 Operationalization of LLIN durability data WHOPES to consider including durability (estimating median survival of LLINs) in the criteria for LN specifications Will be in line with the testing of nets for insecticide retention and if possible be integrated into Phase 1 testing. However, WHO guidance will be required on how to handle currently approved products Might lead to some LLINs being removed from the recommended list if they fail to

43 Best buy list: WHOPES recommendations focus on minimum acceptable criteria the VCTEG recommends the launching of a systematic system of performance assessment similar to the successful experience made with Rapid Diagnostic Test kits (FIND/CDC/WHO testing) This would allow purchasers to make a comparative costbenefit analysis in their purchasing options Ultimately stimulating manufacturers to produce and offer more durable products with option to periodically evaluate their newer versions/ products Future performance criteria could include insecticide resistance management properties of candidate LLIN products.

44 Call to countries and partners Quality field monitoring studies are needed to inform procurement decisions and timing the replacement of nets Countries and partners therefore need to mobilize resources for: routine monitoring of LLIN durability under operational use implementation research including capacity to validate such data.

45 Thank you

46 Positions from which net pieces are cut for chemical and biological assays Rectangular net Side panels Roof panel 3

47 The Global Fund s LLIN Procurement Strategy, Tender Process and Future Plans Global Fund/UNICEF Pre-tender briefing, Copenhagen, 20 th August

48 Procurement for Impact (P4i) Objectives Maximising investments on LLINs within a dynamic and sustainable market environment Creating value for the Global Fund in LLIN through improved sourcing and greater understanding of the market; Developing a new supply chain model incorporating direct supplier management, an updated approach to pooled procurement and improved delivery to recipients. Developing new processes including forecasting to improve net availability in line with country programmes Moving towards standardisation of specifications to simplify procurement & production Reducing the risks associated with the LLIN supply chain Engaging with other agencies and suppliers to drive innovation and collaboration Encouraging local production to WHO standards without de-stabilising the market. 2

49 Background and Introduction The LLIN procurement strategy is based on the following key principles A shift to long term contracts to provide greater visibility for capacity planning; production optimisation and a sustainable market; The maintenance of a competitive pricing dynamic in the market; Risk mitigation through the distribution of long term contracts across various geographic regions and mechanisms to avoid market dominance by few suppliers; An acknowledgement of the differences between nets but also a recognition of the current limitations on LLIN durability data & the current LLIN replacement policy on procurement decisions; A collaborative approach and the provision of support on LLIN durability studies and other innovative activities related to cost effectiveness of nets to ensure value for money; 3

50 The Procurement Strategy Global Fund and participating agency volumes will be divided into two pathways. Pathway 1 Volume allocation and commitment 1. The bulk of the currently 2014 forecast ( VPP ) required volume will be allocated and committed to a selected panel of suppliers on a long term agreement, however poor performance or non-compliance to GF principles will lead to loss of membership; 2. These suppliers will be selected through a tender process and will be expected to work collaboratively with the fund to drive innovation and reduce costs. 3. Volume allocation will be calculated using an algorithm that combines annual forecast, regional allocation and individual supplier capacities. 4. Contracts will be awarded for two years and demands including 2015 will be updated quarterly during this period. 4

51 The Procurement Strategy Pathway 2: Spot tendering The remaining volumes will be tendered and awarded to all eligible suppliers on an as required basis. Managing the orders IDA as the PSA will place orders on behalf of PRs with specific suppliers for specific nets according to contractual agreements and monitor contract performance / delivery 5

52 Key Elements of the Tender 1. Template based with a weighted scoring mechanism commercial and non-commercial ; 2. No public opening - Successful bidders and initial panel prices will be made public; 3. Participation requires completion of conformance certificate indicating certain technical and regulatory criteria are met. 4. GF will provide single point of contact, all other tender related communication with the fund or PRs will invalidate your proposal 5. Commitments made in the tender will become contractually binding. 6

53 The Evaluation Model The tender document is structured into 4 elements. Within each element a number of criteria will be evaluated. Element Criteria Element Score Weighting (Total) 1. Product and Company Product Details Original or Equivalent Product Plant Ownership Forecast and Lead-time Level of Innovation 2. Commercials Initial Price (against 4 high volume nets) Forecast and Lead-time Volume discount 3. Quality and Performance 4. Value Proposition Other discount Customer History Delivery Performance (From GF data ) Quality Performance (From GF data) Defined value from a submitted narrative Under Evaluation 7

54 The Strategy in Practice Forecast GF (pooled procurement) volumes by pathway 1 X% of total volumes 90-95% Selected panel of Suppliers Multi variate selection criteria Allocated / Committed volumes 2 year contracts Commitment to collaborative working Performance Management 2 Open order Tenders (spot tendering) Y% of total volumes 5-10% Open to all WHOPES accredited suppliers Price / lead time based On demand tenders Individual purchase orders 8

55 The Pricing in more detail The pricing mechanism reflects the length of the contracts and our desire to adopt a collaborative approach. We will require open book pricing We will ask you to submit and initial price and a volume discount 1 Initial price We will ask you to identify further discounts that could be offered if certain criteria are met. Some we will provide, others we will ask you to identify. 2 P1 P3% P4% P5% P6% P7 3 Potential final price P2% Indicative discount for high volume In the contract we plan to include a material price adjustment mechanism

56 Allocation will be subject to caveats--- Maximum global allocation to any single supplier / product Maximum allocation based on: verified total capacity available (un-booked) capacity Minimum allocation linked to geographical regions: India, Africa, Pakistan, Bangladesh South East Asia, China 10

57 The Long Term Agreements A sample of the new contract will be included in the tender documentation. While we will agree to some negotiation on certain elements, prices submitted in the tender and proposed discounts will be contractually binding. Key Points. 1. A commitment to work together collaboratively to reduce cost and drive innovation. 2. Flexibility to manage change 3. Implementation of key performance indicators and annual strategic partner meetings. 4. Consider initial pricing offered to be made available to independent PRs and other agencies but fully discounted pricing will only be made available if they sign up to the commitment process. 11

58 The Proposed Contractual Framework Global Fund Framework contract Existing VPP contract (some modifications) IDA Purchase Orders Supplier PRs 12

59 In the longer term.. Demand Management of orders collaboration with countries and partners; Improve efficiency through product standardisation and the simplification of packaging / labelling Improvements to terms of payment / cash flow Increase the percentage of overall demand going through Long Term Agreements 13

60 The Forthcoming Tender: Scope and Timeline Scope Total forecast - confirmed volume (certain) plus an additional potential volume (likely) Timeline Scheduled Time Deadline 1. Request for Proposal Issued 9 th Sept 3. Deadline for suppliers to submit clarification 13 th Sept questions by to the proposal contact. 4. responses to all questions will be issued to all 16 th Sept suppliers at this time 5. Deadline for electronic submission of proposals 7 th Oct 6. Anticipated date for contract award By 4 th Nov

61 UNICEF s LLIN Procurement Strategy Tender Process and Future Plans Joint UNICEF/GFATM LLIN Pre-tender Meeting 20 August 2013, Copenhagen Presenters: Helene Moller Elena Trajkovska

62 UNICEF LLIN Procurement Use of Long Lasting Insecticidal Nets (LLINs) remains a key UNICEFsupported malaria prevention strategy. UNICEF is one of the major buyers of LLINs, purchasing over 170 million nets over the past 11 years. UNICEF works with donors and partners including The Global Fund, UNDP, ALMA, RBM, AMP, WHO, World Bank, Government of Japan, USAID, UNITAID, and others. UNICEF works with manufacturers to ensure availability of quality products.

63 It is unacceptable that every day more than 1,500 children die needlessly. We must not cease our efforts to distribute insecticide-treated nets to those who need them and to ensure that febrile children are being tested and are administered appropriate medications., UNICEF s Executive Director, Anthony Lake.. The recent gains against malaria are threatened by a shortfall in funding. Countries commit to control and eliminate malaria with new tools and approaches. It is critically important that we stay on course until the disease is stopped altogether. For the first time in history, defeating the disease altogether is within reach

64 Summary of Past LLIN Strategy Milestones Achieved UNICEF uses a forecast and updated information sourced from countries and partners to establish high visibility procurement through its LTA (long-term agreement) holders; The introduction of LTAs with target allocations was a major shift in strategy for 2009 procurement; Quality Assurance strategy Pre-delivery Inspection Guidelines shared with industry; Annual pre-tender meetings with LLIN industry since 2008; Price Transparency since January 2012

65 UNICEF LLIN Procurement Supply not sufficient to cover demand; Use of both LLINs and un-treated nets; First attempts to obtain forecasts from COs in 2005 Annual forecasting exercise launched in 2008; UNITAID Project; 1 st Meeting with LLIN Suppliers in 2008; Target bound LTAs since 2009 Setting PDI Guidelines Introduction of regular forecast updates to industry; Price transparency; Innovative financing Quantities procured

66 Forecasted vs. Actual Procurement Regular forecast updates are essential.

67 Global vs UNICEF Deliveries in Sub- Saharan Africa Source: Net Mapping Project 7

68 Procurement Objectives Availability, accessibility and affordability of quality LLINs Health LLIN Market/Market Stability Value for Money / Supply Chain Considerations Sustainable quality of supplied LLINs Innovation and product improvement Global partnerships for sustained access to LLINs 8

69 LLIN Supply Chain 1) Selection (regulatory); 2) Quantification and Forecasting (global quantification guidelines) 3) Quality Assurance (insecticide-hazardous); 4) Shipping (long lead times, land locked countries); 5) Receipt and Deliveries (transit); 6) Storage (bulky); 7) Inventory Management (logistics planning); 8) Distribution (campaign vs routine); 9) Information Systems (household owned)

70 Tender Process Overview - Scope Status of current LTAs; Tender process; Purpose of tender; Forecasting process; Tender evaluation criteria; Award of contracts and notifications; Expected changes from previous years tenders

71 Status of Current LTA June May 2013 LTA Implementation - 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 Total Requiement Revised requirement Utilized 5,000,000 0 Total Requiement Revised requirement Utilized June May 2014 LTA Implementation 30,000,000 25,000,000 20,000,000 15,000,000 Total Requirement Utilized Un-utilized 10,000,000 5,000,000 0 Total Requirement Utilized Un-utilized

72 Tender Process 1) Procurement Strategy; 2) Pre-tender meeting with Industry; 3) Launch of Tender; 4) Clarifications on tender documents; 5) Closure of tender; 6) Evaluation of proposals and review; 7) Award of contract and Award Notifications; 8) Post award debriefings

73 Purpose of the tender Un-interrupted and sustainable supply of affordable LLINs of assured quality Right Supplies Right Place Right Time Right Quantity & Quality Cost- Effective $ Value for Money throughout the supply chain Increasing access to LLINs through enabling a healthy market for suppliers and beneficiaries 13

74 Forecast and requirement Annual Country Forecast Review forecast with partners Regular Follow up with countries Forecast updates Regular updates to LTA holders Clarify and verify forecasts with countries

75 Tender Evaluation Criteria Proposal evaluation method and evaluation criteria a) Review of Mandatory Requirements WHOPES, Companies legal registration; Latest audited financial statements; UNGM registration; Compliance with General Terms and Conditions) b) Evaluation of Quantitative Information Production capacity, Monthly production capacity offered to UNICEF, Discounts, Past delivery performance records. c) Evaluation of Qualitative Information Factory inspections, PDI records, Participation in price transparency, Compliance with Contractual Terms and conditions, WHOPES Status, FCA Locations, Local Production.

76 Tender Evaluation Criteria Evaluation of proposals for products not yet WHOPES approved at the time of award Suppliers WITHOUT WHOPES recommendation of their product offered at time of tender would not be eligible for contract award prior to obtaining minimum Interim recommendation; For non-whopes recommended products proposers should include a detailed plan on the timeline to obtain WHOPES approval; UNICEF should be kept informed about the progress of the submitted timeline; Upon obtaining necessary WHOPES recommendation, UNICEF may considers establishing an LTA with the supplier under one or more of the following conditions: Lack of performance of current manufacturer(s); or Insufficient supply from current manufacturer(s); or Additional needs.

77 Award of Contracts BASIS FOR AWARDS Awards for the full projected quantity defined herein will be made to multiple manufacturers on the basis of most responsive evaluated proposal as per evaluation criteria. Awards will be publically available on UNICEF web-site

78 Post-award Debriefings All manufacturers are advised of the outcome of their proposal Manufacturers receiving an award are invited to a formal debriefing Manufacturers not receiving an award may request a debriefing During a debriefing session, the strengths and weakness of the manufacturer s proposal may be discussed. Details concerning the evaluation, results of a competitor will not be discussed, other than to indicate that which is publicly available on UNICEF web-site

79 Changes from previous years tenders Collaboration with partners in forecast updates; Request for including information on FCA supplier premises price in addition to FCA Containerized Nearest Port; Quantity of LLINs per 20 ft and 40 ft containers added on the list of evaluation criteria; Increased focus on supply chain considerations and local production capacities; Participation in UNICEF s price transparency; Packing list per container/container Manifest; Potential Change in procurement cycle and LTA Duration;

80 Looking ahead Next Steps & Future Plans

81 Tentative 2013 LLIN Tender Timelines Joint Pre-Tender Meeting: 20 August, 2013 Issuance of Request for Proposal: 15 October, 2013 Closing of tender: 15 November, 2013 Clarifications and evaluation: 15 Nov 5 Dec, 2013 Announcement of Awards: mid-dec 2013 LTA commence: 1 January, 2014

82 Future Plans Enhanced collaboration with partners in following demand and availability and global trends in meeting requirements; Value for money concept that considers overall supply chain of LLINs and product durability; Collaboration with partners and industry towards product and process innovations and product improvement; Regular updated of forecasts and funding availability

83 Q&A UNICEF s Next tender Thank you!