Procurement of Anti-TB Drugs

Procurement of anti-TB pharmaceuticals 1

Learning Objectives
• To review basic principles and methods in the
procurement of Anti TB drugs
• To review components of the procurement cycle and
their importance
• To identify the major stakeholders in the
procurement of Anti- TB Products in Ethiopia

Procurement of anti-TB pharmaceuticals 2

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Definition and Procurement Source
Process of obtaining/acquiring supplies and
services
Three main sources of procurement
Purchase (buy)
Manufacture in-house (from available materials)
Receive donation (in kind)
Purchase is by far the commonest source

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 Procurement Cycle

Review Product Selection Determine Quantities

Procurement Reconcile Needs and Funds

Collect Consumption Planning
information
Choose Procurement Method

Distribute products
Monitoring Locate and Select Suppliers

Specify Contract Terms

Make Payments

Receive & Check Products Monitor Order Status

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Procurement planning
• Considerations in procurement planning
Ensuring availability of funds and sources
Selecting the most suitable procurement method
• Procurement Planning answers the question
• What to procure
• Which procurement method
• How to monitor the procurement activities
• Procurement planning is highly influenced by Selection and
quantification.

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Principles of a Good Procurement
Program
 The main objective is to satisfy the need of health institutions and/or
patients.
 Principles of Procurement
• Value For money
• Transparency
• No Discrimination
• Encourage local Manufacturers
Appropriate procurement fulfills the 6th rights
Right Quality (product in right condition)
Right Quantity
Right time
Right price
Right source
Right place Procurement of anti-TB pharmaceuticals 7
Good Procurement Practices

Procurement by generic name

Limited to essential medicines list
Bulk purchases (Pooled Procurement)
Formal supplier qualification and monitoring
Competitive bidding process

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 Good Procurement Practices cont…
• Order quantities based on reliable estimate of actual need
• Reliable payment and good financial management
• Transparency and written procedures
• Product quality assurance program
• prequalification of suppliers,
• visual inspection of products when they arrive,
• sampling for laboratory testing
• Regular reporting on performance
• Annual audit with published results

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Commonly used Procurement
modalities
• Open tender (ICB)
• Restricted tendering
• Request for quotation (proforma)
• Direct procurement (Single source procurement )

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Open tender (ICB)

When there is ample time

Specifications easily understood by all bidders

When there is large number of suppliers

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Restricted tendering

 If the Item is produced by limited manufacturers.

 When there is limited time and the cost of open
tendering is greater

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Request for quotation (Performa)

• is used for low item Values

• an appropriate method only for procuring
readily available, off-the-shelf goods or standard
specification commodities
• For procurement of products which are missed in annual
bulk purchase but immediately needed
• When there is time constraints and incase of emergency
situation.
• Specifications easily understood by all bidders.

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 Direct procurement (Single source
procurement )
• Items with patent monopoly

• When there is no alternative supplier

• When its confirmed that there is one bidder on

repeated tenders

• During Emergency situation.....outbreak, war....stock

outs

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Cautions on Anti- TB medicines Donations
 TB drugs are the ones needed by the recipient country
 not those the donor can use as a tax deduction or can
dump for another reason
 Donors must respect authorities’ decisions and support
existing government policies
 Donations must not be of lesser quality
 Donations must be preceded by effective
communication between donor and recipient
 Source of donation shall be clearly identified

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Sources of Anti –TB products

 Global Drug Facility (GDF)

 WHO Prequalified Manufacturers

 In-house manufacturers

 International agencies

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Stakeholders involved in Procurement of Anti-TB Products in Ethiopia

Forecasting & supply planning:

NTP/FMOH coordinated with PFSA and partners
Funding:
GFATM (Major)/?
Procurement:
Direct procurement from GDF
Procurement by PFSA
Quality standard
PreQ (WHO..GF List), and National regulatory authorities
for QA (FMHACA,…EPHI..)

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 Procuring Through the GDF
GDF services for first-line Anti-TB drugs
Free drug grants—only after country is proven eligible (for countries
with no sufficient finances for their medicine needs & lack adequate
procurement capacity, including a robust quality assurance system
Direct procurement mechanism—country buys drugs
Availability of children’s dosages and laboratory diagnostic kits

GDF services for MDR second-line Anti- TB drugs

Procures MDR second-line drugs once the GLC approves a
country’s DOTS Plus project to treat drug-resistant TB cases
Direct procurement mechanism—country buys drugs with own
funds or those of GFATM grants

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Challenges of Anti-TB Products procurement in
Ethiopia
 Delay custom clearance
oComplete shipping documents are not coming from
GDF
 Longer lead time by GDF and Other Suppliers beyond
the agreement with notification
 Supply of drugs with short shelf life by GDF
 Partial Shipment requests from Suppliers
 Different shelf life of pharmaceuticals in one Anti TB
Patient Kit.
 Limited Manufacturers of Anti TB drugs (SLDs &
Streptomycin from FLDs)

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Procurement of ancillary drugs and
other supplies

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Procurement of ancillary drugs

• Fund from ….Global Fund /Other Source.

• Procured through PFSA.
• Transfer from RDF whenever enough stock is at
hand and reimburse budget.
• Facilities should provide these ancillary drugs freely
to patients and need to have at stock with Anti TB
drugs

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 Thank You!!!

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