Advance Purchase Commitment Considerations

Transcription

1 ZIKV Diagnostics webinar 30th August 2016 Advance Purchase Commitment Considerations Lama Ramzi Suleiman

2 Overview UNICEF and PAHO have been working with USAID to put together an Advance Purchase Commitment (APC): - In late discussions to secure ~$10 million to guarantee funded off-take starting in APC to accelerate and de-risk suppliers entry into the market improved commercial terms for UNICEF and global community - In the following, we present our latest thinking around this contracting structure, after working closely with PAHO and USAID. - We are using this opportunity to consult with suppliers and partners to get additional feedback before we finalize the structure to ensure strength of design. 2

3 Parameters Under Consideration Parameters Form of Contracting Proposed Terms Advance purchase commitment: If contracted, legal / guaranteed obligation to purchase awarded volumes, regardless of materialization of demand over a fixed time period. Suppliers will provide offers for the firm commitment component via call for offers in upcoming tender Conditional awards are made which turn into firm commitment upon supplier meeting appropriate triggers including 1) acquiring successful regulatory approval and 2) making the supply available according to agreed-upon timelines. Funding Pool to Support Contracting $10 million (expected) Access to the firm commitment quantities adjudicated by UNICEF and PAHO according to tender objectives and evaluation criteria (price and other) Volumes Up to 15 million units of tests over 3 years (final quantities to be made available for APC, still TBD) Segmentation : Up to 4 million test quantities dedicated to newly developed serological and molecular IVD using RDTs and POC platforms whether in single or multiplex format (offering differential diagnosis for ZIKV among other related viruses specifically DNV, CHIKV, YF with or without WNV). Up to 4 million test quantities dedicated to newly developed serological and molecular IVD using RDTs platform whether in single or multiplex format (offering differential diagnosis for ZIKV among other related viruses specifically DNV, CHIKV, YFV with or without WNV). Up to 7 million test quantities dedicated only to serological and molecular IVD using RDTs and POC platforms in a multiplexing format (offering differential diagnosis for ZIKV among other 3 related viruses specifically DNV, CHIKV, YF with or without WNV).

4 Parameters Under Consideration Parameters Duration Call for Offers Procurement / Placing Orders Excess demand Proposed Terms contracting period 2x: UNICEF and PAHO joint tenders in 3Q2016 ± ~2 weeks (awards / commitments by 4Q2016) In 2Q2017 ± ~1 month (awards / commitments by 3Q2017) For APC quantities, UNICEF will establish Long term arrangement(s) on behalf of both UNICEF and PAHO which contain APC terms. UNICEF and PAHO will place Purchase orders respectively with the awarded suppliers based on these LTAs For suppliers that receive firm commitments, any contracted non-firm demand in excess of the firm commitment must be the initial APC price 4

5 Potential Guaranteed Purchase Tests (Example of Profile) Example of commitment profile: Intention is to award significant portion of the APC opportunity in 2017 and 2018, but actual awards will be dependent upon offers 5

6 Anticipated Timeline Timing Item 30 August 2016 Webinar with Industry and Partners Mid-to-late September 2016 Initial PRG consultation 30 September 2016 (± 2 weeks) 4Q st call for offers (RFP) to access APC 1 st tranche of (conditional) awards and/or commitments 1Q2017 2Q2017 Initial products are ready for procurement, with successive products introducing thereafter 2 nd call for offers (RFP) 4Q st tranche of (conditional) awards and/or commitments 6

7 Feedback From Suppliers? We would like to hear your thoughts: - By committing to purchase a fixed quantity during , does this provide incentive to further accelerate development? (i.e., is this a meaningful intervention). In your view, should the guarantee be front-end loaded or back-end loaded? - We currently consider using the test unit as the commitment in order to evaluate / award on apples-to-apples basis between POC and RDT. Is this fair? Are there other approaches we should consider? - For the considered parameters: have we omitted any key ones in your view, and are there other contractual variations which may be attractive to suppliers to further accelerate development and secure improved affordability? - What barriers, exist to scaling-up production, once a product is fully developed? Can these barriers be further reduced by incorporating features into this APC intervention? - Will you be ready to submit offers during Q and Q2-Q in response to this tender? - Are there other considerations which should be included in our timeline? 7