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Overview of the Global Fund Procurement and Supply
Management Policies.
Local Fund Agent Training Workshop
Pharmaceutical Management Advisory Services
Session Objectives
• Provide an overview of the Global Fund’s approach to Procurement and Supply Management (PSM) and the principles underlying the Global Fund PSM Policies
• Understand the role of the Local Fund Agent (LFA) in relation to Grant Pharmaceutical and Health Products Management (PHPM) activities.
Country Proposal is approved for TGF Grant
TGF disburses funds to Principal
Recipient (PR)
Patient receives
drugs
PR receives and checks drugs
PR prepares PSM Plan specifying health products
and quantities to order
Plan is submitted to TGF/LFA for
assessment and approval
PR launches procurement process
PR reconciles needsand funds available
PR evaluates bidsand awards supply
contract
PR places order for drugs and monitors
order status
PR makes payment
PRdistributes drugs
PR collects
consumption information
PR reports
results to TGF
Suppliers submit bids
The long and winding road of Procurement…
Why is procurement and supply chain management important?
• Approximately 45% of grant funds are budgeted for the procurement of drugs and other commodities
• In many countries, the procurement process is a major cause of delays in grant implementation
• Limited PSM capacity and systems in many countries
The procurement process must improve for the Global Fund to achieve its mission
The Global Fund’s approach to PSM
• Principles and minimum standards, not detailed procedures
• Build upon existing systems
• Distinction between health and non-health products
• Expanded definition of Procurement: Pharmaceuticals & other Health Products Management (How health products arrive in a country and what happens to them subsequently)
• Principal Recipient (PR) is responsible for all PSM activities (whether directly implemented or sub-contracted).
Key Document: Guide to The GF’s Policies on PSM
• Outlines all Global Fund’s PSM Policies– Procure quality assured
products – At the lowest price– Adhere to National and
International Laws– Conduct procurement
processes in a transparent and competitive manner.
• Based on the Global Fund Board decisions
• Outlines what PR’s need to do.
PHPM Systems and Capacity
PR procurement systems must adhere to Interagency Guidelines on Good Pharmaceutical Procurement (WHO 1999): Competitive bidding Transparent and accountable practices Appropriate quality assurance mechanism
LFA assesses PR’s capacity for Pharmaceutical and Health Product Management (PHPM): Manage all PHPM activities Subcontract certain PHPM activities Subcontract all PHPM activities to an Agency with acceptable
capacity.
Role of the LFA in relation to Grant PHPM activities
Role of the LFA* in relation to Grant PHPM activities
1. Assess if the PR PHPM systems and capacity are sufficient to successfully implement the approved proposal
2. Review the PSM Plan and provide appropriate recommendations
3. Identify any critical capacity gaps that need to be addressed in the short-and/or long-term.
4. Monitor/review grant implementation and report any issues or potential risks to effective management of pharmaceuticals and health products financed by the grant. * LFA PSM
Experts
Good practices and lessons learnt
– PHPM Assessments based on on-site visits or intimate local knowledge most useful
– SMART* recommendations, tied to grant timeline depending on risk, enable effective decision-making for successful grant implementation
– Identifying and flagging problems or potential risks early on helps to engage PR to address them or seek technical assistance where necessary.
(* SMART: S = Specific, M = Measurable, A = Achievable, R = Relevant, T =Time-bound)
Day 3 - PHPM Clinic
Day 3 - PHPM Clinic
• PSM Plan Reviews and LFA PHPM Assessments
• The Global Fund Quality Assurance Policy
• Voluntary Pooled Procurement (VPP) and Capacity-Building Services for procurement and supply-chain management
• Price and Quality Reporting (PQR) - formerly known as the Price Reporting Mechanism (PRM)
Details will be presented and discussed during the
PHPM Clinic Session.
2.
1.
ContactContactDr Luca Li BassiDr Luca Li BassiManagerManagerPharmaceutical ManagementPharmaceutical ManagementAdvisory Services TeamAdvisory Services Team
phone:phone: + 41 22 791 1700 / + 41 22 791 5950 + 41 22 791 1700 / + 41 22 791 5950 email:email: [email protected]