Procurement Practices of Family Planning Commodities:

Transcription

1 Procurement Practices of Family Planning Commodities: Assessment of tenders FP2020, Market Dynamics Working

2 Challenges and opportunities

3 Analysis of Procurement Practices Objectives The main objective is to identify best practices in procurement of family planning commodities. Specific objectives: To assess the current procurement practices in family planning across public and social marketing sector; To understand the key drivers that have an impact on the availability, choice, quality and affordability of family planning commodities for the users; To understand parameters that have an impact on the efficiency and effectiveness of procurement practices both from procurers and manufacturers perspectives.

4 Approach & Methodology Review of Request for Proposals (RFP) from different procurement organizations QUALITY AFFORDABILITY AVAILABILITY CLIENTS RFP CLAUSES CHOICE EFFICIENCY EFFECTIVENESS PROCURERS EFFICIENCY EFFECTIVENESS MANUFACTURERS

5 Presentation of analysis Identification of key clauses in the RFP which have maximum effect on selected access indicators Effect coded into: promotes inhibits neutral or no effect The effect is further elaborated to formulate the potential impact on the access indicators, based on certain assumptions

6 Some preliminary findings RFP Section Bidder eligibility RFP clause Registered in country of manufacture; Has a PQ product or submitted application for PQ cgmp certification; vendors who are not manufacturers can submit cgmp certification, in addition to quality requirements. Restricts products from xx countries primary manufacturer or agent (with authorization). Must hold a marketing license (if product authorized in country of manufacture) or export license (if not authorized). Client Pr Mf Q Af Av C E/E E/E Assumptions: Affordability improves with increased competition Strict requirements limits participation of pharmaceutical companies better efficiency and effectiveness for procurers Availability improves with vendor participation

7 Some preliminary findings RFP Section Contractual volume RFP clause minimum & maximum quantity mentioned. Offers below minimum qty can be deemed non-responsive. Multiple awards possible Contractual volumes not mentioned. Historical global procurement volumes provided as reference. Invited to provide quantity/volume discounts and staircase pricing if applicable.reserves the right to make multiple arrangements quantities mentioned. Right to vary qty. ±25% Client Pr Mf Q Af Av C E/E E/E Assumptions: Visibility in contractual volume enables optimal alignment of manufacturing resources. Is a major driver in improving efficiency and effectiveness of manufacturers, related financial sustainability of manufacturers and affordability of product Visibility in volume requirements by country enables building the business case for manufacturers. Stimulates new market entries Award to multiple bidders stimulates competition and new market entries

8 Some preliminary findings RFP Section Product registration in countries To be declared annually RFP clause Declare countries where product is registered. If not registeredin target country, submit proofof filing of registration and to be completed within one year of award Declare countries where product is registered and provide assurance that registration shall be maintained throughout product shelf-life Client Pr Mf Q Af Av C E/E E/E Assumptions: Product registration in countries provides additional assurance on quality of product and also facilitates market entry and competition Registration, as a pre-condition of contract award, limit the number of bids and affect affordability Registration priorities in RFP assists manufacturers to align resources accordingly

9 Some preliminary findings RFP Section Shelf life RFP clause 5 years from date of manufacture. 4 years 3 months remaining at the time of delivery At least 75% of shelf life remaining at the time of delivery Client Pr Mf Q Af Av C E/E E/E Goods must arrive no more than 6 months into the shelf-life Assumptions: Long remaining shelf life promotes availability and quality at country level. However strict shelf life requirement reduces flexibility in manufacturing leading to limited bids. Limited bidding may negatively effect affordability Strict shelf life requirements requires manufacturing on order, affecting lead times

10 Final consideration RFP clauses should not only be reviewed in isolation. Clauses may be complementary, reinforcing access, efficiency and effectiveness.

11 THANK YOU Frank Roijmans Headquarters in the Netherlands Polanerbaan GN Woerden The Netherlands Tel: Fax: Office in the United States of America 1616N Fort Myer Drive, 12th Floor Arlington Virginia The United States of America