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Content
Principles and Regulatory Framework Guiding UNICEFs
Procurement
UNICEF Vaccine Procurement
Tendering Process and plans
UNICEF GUIDING PROCUREMENT
PRINCIPLES
• Promotion of objectives of UNICEF
(fulfilling the mandate, goals and objectives)
• Fairness, integrity and transparency through competition
(clear & appropriate regulations/rules applied to all suppliers, fair process, equal
treatment of suppliers, transparent system)
• Economy and effectiveness
(meet requirement in terms of quantity, quality, timeliness at the right place.
Economy=minimize cost, Effectiveness=meet end-user interest)
• Best value for money
(Consider the optimum combination of factors in meeting the end user needs;
BVM does not mean lowest cost but best ROI)
REGULATORY FRAMEWORK GOVERNING
UNICEF PROCUREMENT PROCESSESFinancial Regulations and Rules (FRR), Article XII. Internal Control
Financial and Administrative Policy, e.g.
• Policy 1 – Internal Controls
• Policy 5 – Cash Disbursements, Supplement 6 on CRC
Executive Directives, e.g.
• Anti-Fraud Policy, Whistle Blower Policy
Supply Manual: Procurement Guidelines & Procedures
Division Procedures: Supply Division’s SOPs, such as;• DP004 Obtaining and processing solicitation documents
• DP051 Authorising procurement documents
• DP087 Establishing Procurement Strategies
• DP069 Monitoring supplier performance
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PROCUREMENT COMPLIANCE &
OVERSIGHT
Planning for appropriate procurement
• Focus on strategic essential commodities, and managing risk. Procurement
strategies established prior to commencing procurement, including to ensure
stakeholder consultation informs the objective, scope and process, including types of
competition (open, limited, direct procurement)
Checks & balances built into approval and procurement process
• Segregation of duties, independent review committee (CRC) ensuring due process
• Table of Authority – based on value and risk (also reflected in ERP system)
Procurement compliance monitoring
• Use of low value procurement process
• Segregation of duties
• Requirement for competitive bidding
• Local Procurement Authorizations
• Internal and external audits
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UN CODE OF CONDUCT - for suppliers
UNGM registered suppliers sign on to the UN Code of Conduct. (rev Sept 2013).
Based on the UN charter, the principles of the Global Compact and ILO standards;
The UN expects that these principles apply to suppliers and
their employees, parent, subsidiary or affiliate entities, and subcontractors; that they are seen
as minimum standards that suppliers strive to meet and exceed them.
The code addresses:
Labour conditions:[Freedom of Association, no force or compulsory, no child labour,
discrimination, standards for working conditions]
Human Rights: [no Harassment, Harsh or Inhumane Treatment, no manufacture or sale
of mines]
Environment: [compliance with regulations, manage chemical and hazardous
materials; waste and air emissions, Minimize Waste, Maximize
Recycling]
Ethical conduct: [no corruption, conflict of interest declaration, no gift and hospitality,
post employment restrictions.]
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Source: UNIICEF Supply Division
Immunization Supplies
VaccinesBCG , DTP, TT/Td/DT, Measles
containing, OPV, HepB, YF,
DTP-HepB, DTP-HepB/Hib,
DTP/Hib, Hib, MR, Meningitis,
MMR, PCV, RV IPV, HPV, etc.
Safe Injection equipment
Cold Chain Equipment
Vaccines Supplies: US$ 1, 285 million2.79
billion doses2,185
shipments2013
Countries UNICEF
procures on behalf of
Full schedule
Partial schedule
UNICEF has a key role in vaccine procurement and procuring
immunization supplies on behalf of around 100 countries annually
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UNICEF Vaccine Procurement
Overall objective of achieving Vaccine Security:
Ensure an uninterrupted, sustainable supply of affordable,
quality vaccine
Compliance with UNICEF Vaccine Procurement Principles, and
GAVI Vaccine Supply and Procurement Objectives
Quality is an overriding criteria for vaccines: UNICEF rely on WHO for
assessment and advice regarding quality and safety of vaccines
UNICEF Vaccine Procurement Principles
• A healthy industry is vital to ensure uninterrupted and sustainable supply of
vaccines
• Procurement from multiple suppliers for each vaccine presentation
• Procurement from manufacturers in developing countries and industrialized
countries
• Paying a price that is affordable to Governments and Donors and a price that
reasonably covers manufacturers minimum requirements
• UNICEF should provide manufacturers with accurate and long-term forecasts;
Manufactures should provide UNICEF with accurate and long-term production
plans
• As a public buyer, providing grants to manufacturers is not the most effective
method of obtaining capacity increases
• The option to quote tiered pricing should be given to manufacturers - in
accordance with the World Bank classification.
GAVI Vaccine Supply and Procurement Objectives
1. Balance of supply/demand
• Ensure sufficient availability to at least meet total GAVI
demand
• Provide consistent uninterrupted supply to GAVI countries.
2. Cost of vaccine to GAVI and countries
• Minimize cost per course
• Minimize cost implications
3. Appropriate and innovative vaccines
• Procurement of appropriate, quality vaccines to meet GAVI
country needs
• Foster an environment for innovative vaccines
4. Communicate timely, transparent and accurate market information
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Tenders can cover a specific requirement, or a single or multi-year forecast
depending on the vaccine and tender.
Tenders are issued with the aim to allow for appropriate planning before
first required supply.
UNICEF establishes Supply Arrangements “frameworks’’ called Long Term
Arrangements (LTA’s):
• Purpose: To establish forecasts on quantities to be produced and
quantities to be bought over the LTA duration
• Defines Technical, Quality and Commercial requirements for the
specific Purchase Orders that are then placed against the LTA
The specific tender objective defines the expected tender
outcome:
UNICEF
Issues Formal
Tender
and Evaluates
Offers
Establishment of
Long Term
Arrangements
for supply of
vaccines for
multiple years
1-4
years
Placement of
orders
PO
POPO
Shipment from
Manufacturer
to countries
(UNICEF
freight
forwarders)
Country
inspection
Invoice
payment
Vaccine
Arrival
Report
Procurement process overview
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The tender process: Develop, Issue, Receipt
1. Development of specific procurement strategy and objectives
2. Demand / Forecast development
3. Development of draft tender document
4. Pre-tender consultation with industry
5. Feedback from industry and finalization of tender document
[The above may be with relevant partners or PRG* consultations]
1. Issuance of tender – invitees
2. Clarifications
3. Receipt of proposals
*PRG: Procurement Reference Group established for some GAVI supported vaccines
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The tender process: Evaluation, Award
9. Technical review of proposals (by WHO)
10. Quantitative and Qualitative review by UNICEF
11. Clarification meetings/calls with suppliers
12. Evaluation of proposals per Evaluation Criteria & Procurement Objectives
13. Consultation with PRG* and Partners
14. Recommendation of awards based on evaluation
15. UNICEF internal award review and approval process
16. When applicable, Partner (f.ex. GAVI) approval, and provision, of any financial requirements
17. Information of outcome to PRG
18. Notification of awards to proposers
19. Establishment of Arrangements
20. Public posting of awards (www.unicef.org)
21. Debriefing of proposers*PRG: Procurement Reference Group established for some GAVI supported vaccines
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Public Notification of Awards
UNICEF has standard procedures for publication of awards on website:
• Tender, duration, total value, material(s), supplier name
• This is UNICEF standard procedure (not vaccine specific)
After awards of LTAs, all Proposers will receive a letter including the following
information:
• Total vaccine quantity awarded per year per presentation at an aggregate
level
• Number of suppliers awarded per year per vaccine presentation
• Yearly projected weighted average price (WAP) per vaccine presentation
based on the awards made
• Individual (own) manufacturer pricing and quantities if awarded
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Ensuring equal treatment, no bias and ethics
• Contracting staff are governed by UNICEF Financial Rules and Regulation and procedures related to ethical behaviour
• During the time when a tender is open (from tender issuance to closing) -communication with suppliers is more formal and written, in accordance with tender instructions
• Bids/proposals are received and validated by an independent ‘Bid Section’ (QA) and then transferred to Contracting staff
• UNICEF does not accept manufacturers to fund trips, hotels, etc. or gifts
• Business should be conducted during normal working hours
• Meetings should be with minimum two UNICEF staff members
• Suppliers not invited to UNICEF staff offices
UNICEF
Issues Formal
Tender
and Evaluates
Offers
Establishment of
Long Term
Arrangements
for supply of
vaccines for
multiple years
1-4
years
Placement of
orders
PO
POPO
Shipment from
Manufacturer
to countries
(UNICEF
freight
forwarders)
Country
inspection
Invoice
payment
Vaccine
Arrival
Report
Procurement process overview
Working with UNICEF on vaccines – operational expectations
• Communication – timely & accurate on planning, execution and strategic issues:
• Minimum Vaccine Shelf life - minimum shelf life at time of shipment is defined.
Require effective forecast exchange to align availability and demand, and agile production planning.
Deviation require explicit acceptance from countries prior to shipment is required
UNICEF is reviewing with WHO specific case where this has been a persistent challenge
• Country registration: countries are increasingly enforcing registration
requirements
Manufacturers need to pursue registration; not being registered limits flexibility in order placement
• Feedback on how we are doing
Is our communication and performance on planning, strategic issues and operational execution
sufficient? Lacking? Good?
Transparency on vaccine prices and markets
Supporting countries to make informed decisions
As a public procurement agency, recognising the need for increased
transparency
Price Transparency
• Historically, UNICEF has posted weighted average pricing for current
year
• Specific country pricing provided in response to the forecast at the
onset of the year
• Since January 2011 posted all historic pricing contracted under LTA
from 2001
Looking forward: continued transparency efforts;
• Additional pricing information, expanding beyond LTAs
• Continued development of Market notes to inform stakeholders
Overview of main 2014-2015 tender activities* for vaccines
*Estimated timelines, may be adjusted
2014
Q4 Q1 Q2 Q3 Q4
Non GAVI
Pentavalent
vaccine
Tender
Seasonal Flu Tender
BCG Tender
TT and Td Tender
DTP, DT, HepB Tender
Pentavalent
vaccineTender
Rota vaccine Tender
Cholera emergency
stockpileTender
IPV containing
vaccine
Expression of
interest
Product2015