Good Procurement Practices in National TB Programs

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Good Procurement Practices in National TB
Programs Andrey Zagorskiy Senior Program
Associate Management Sciences for Health
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TB Drug Management Cycle
Selection
Management
Procurement
Use
Support
Distribution
Policy and Legal Framework
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Objectives of TB Drug Procurement

• Procure the most cost-effective drugs in the
  right quantities.
• Select reliable suppliers of high-quality TB drug
  products.
• Ensure timely delivery.
• Achieve the lowest possible cost.

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DOTS Strategy

• Government commitment to national TB program
• Case detection by sputum smear microscopy
• Standardized treatment regimen
• Uninterrupted supply of quality TB drugs
• Standardized recording and reporting system

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Operational Principles Efficient and Transparent
Management

• Procurement responsibilities are defined and
  divided among different offices.
• Formal written procurement procedures are
  available.
• The procurement process is transparent.
• The criteria for supplier qualification and
  contract awards are clear and explicit.
• Procurement strategy, timelines, and performance
  monitoring are thoroughly planned and adhered to.

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Operational Principles Accurate Selection and
Quantification

• Procurement of TB drug products is limited to
  official essential drug list/formulary and
  treatment standards.
• DOTS strategy is officially approved.
• TB drug products are listed under their
  international nonproprietary names (INN).
• Quantities are ordered based on a reliable
  estimate of actual need.

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Operating PrinciplesFinancing and Competition
(1)

• Mechanisms for procurement expenses and timely
  payment to suppliers are established.
• Government guarantees
• Funds for procurement activities
• Reconciliation of needs and funds
• Prioritization
• Economies of scale are achieved through pooling
  together procured quantities and resources.
• Centralized procurement
• Pooled procurement in decentralized setting

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Operational PrinciplesFinancing and Competition
(2)

• Competitive mechanisms are used to procure TB
  drugs.
• Centralized competitive bidding with
  prequalification
• Utilization of international mechanisms GDF
• Direct procurement of specific drugs Green Light
  Committee (GLC)
• TB drugs are purchased from the one supplier who
  won the contract (sole-source commitment).
• Competition increases.
• Trust between purchaser and supplier improves.

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Operational PrinciplesTB Drug Quality Assurance
(1)

• Suppliers of TB drugs are prequalified and their
  performance is monitored.
• Transparent prequalification criteria
• Supplier performance indicators
• Database on suppliers of quality TB drugs
• Reliable and accountable distribution system
• Ongoing process

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Operational PrinciplesTB Drug Quality Assurance
(2)

• Purchased TB drugs meet international standards
  for high quality.
• Compliance with good manufacturing process
• WHO Certification Scheme
• Evidence of bioavailability
• Mechanisms to report drug quality problems and
  adverse reactions

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The Procurement Cycle
Determine Quantities
Review Drug Selections
Collect Consumption Info
Reconcile Needs and Funds
Distribute Drugs
Choose Procurement Method
Make Payment
Locate and Select Suppliers
Specify Contract Terms
Receive and Check Drugs
Monitor Order Status
Award Contract