Presentation for WHO on R4, Feb 2004

1
Asia Regional Meeting Siem Reap, Cambodia 21-23
April 2004 Procurement and Supply Management
(PSM) Discussion Topics and Response
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Key questions Procurement polices with financial
implications

• Can we include the funds from different funding
  sources for pooled procurement?
• Yes, and this is encouraged, especially if this
  leads to increase in volume of procurement and as
  a result, a reduction in per unit cost of
  product.
• If budget is insufficient, can we use alternative
  source of funding for the same procurement?
• Yes
• Can we fund technical assistance to pay WHO?
• Yes, WHO or any other group that provides high
  quality technical assistance.
• Do we need tax exemptions for NGOs and for small
  value of procurement?
• Yes, in principle tax exemptions are required,
  however there may be some waivers, on a
  case-by-case basis.

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Key questions. Operational/implementation Issues

• Can we change suppliers, different from as
  specified in implementation letter?
• Yes, as long as there is a reasonable rationale
  provided for the change
• Can the PR and SRs do procurement together?
• Yes, and this is encouraged to increase the
  volume of products purchased pooling procurement
  normally results in greater efficiency and lower
  costs.

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Key questions. Policies and Procedures

• Are there universal procedures for how
  procurement should be conducted or is it locally
  determined?
• The GF operates on a principle of guidelines and
  polices and does not provide prescriptive
  operational steps. We refer to other documents
  for more details including Interagency guidelines
  for procurement, World Bank procurement
  guidelines, etc. In some countries, the GF has
  accepted WB procurement guidelines as a
  supplement to GF procurement policies
• If an PR/SR has already been pre-qualified under
  R1 grant, then do they need to be reassessed for
  subsequent rounds for a different disease?
• Yes another assessment will be required, although
  where there is direct overlap, the level of
  assessment may not be as thorough.

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Key questions. PSM Plan

• Can the outsourced management agency of the PR
  develop procurement plan (including goods and
  services)?
• Yes, the outsourced agency can develop and the
  procurement plan on behalf of the PR. The
  procurement plan should include information on
  health products and services.
• What is the response time of the GF from
  submission of PSM plan to approval?
• This ranges from a few weeks to several months
  depending on the quality of the PSM plan and the
  level of details provided.
• When do we need to modify procurement plans?
• When there are significant changes
• - Change in treatment protocol
• Changes in number of people treated
• Change in patent status
• - Adding Technical Assistance (not previously
  requested)
• For minor changes, such as buying 20 vs. 18
  microscopes, simply communicating this
  information to the FPM should be sufficient.

6
What are the key gaps normally discovered in the
PSM Plan?

• Patent status of products
• Countries response to WTO/TRIPS to access
  patented products (e.g. compulsory licensing or
  government use)
• Product selection as per standard treatment
  guidelines (National or WHO guidelines)
• Internal inconsistencies in PSM Plans
• Insufficient details provided on quality
  control procedures