UNICEF Procurement Strategy for Safe Injection Equipment for 2018 - 2019

Safe Injection EquipmentIndustry Consultation28th – 29th March 2017

Rob Matthews, HTC

Objective of Session

• Provide an overview of the planned

procurement strategy for Safe Injection

Equipment for 2016 – 2017

• Obtain Industry feedback prior to finalization of

the approach

Scope of Products included under this Procurement

Strategy

• The range of products to be included under this procurement strategy are Auto-Disable (AD) Syringes, Safety Boxes (SB) and Re-Use Prevention (RUP) Syringes Disposable Syringes and Needles– RUP with SIP are excluded from this tender due to Single Country

Demand for the 1ml RUP with SIP and no demand for the 3ml or 5ml, therefore not justifying the establishment of an LTA

• The consolidation of these commodity groups under one tender is based upon: – (i) Their interdependent usage in both immunization and curative settings

(as part of emergency response health kits).

– (iii) The consolidation provides the opportunity to make bundled awards across the product range enabling delivery and transactional efficiencies.

• From a value perspective the key commodities covered under this tender round are AD syringes (81%) and Safety boxes (12%), making up 93% of the procurement value in 2016.

Procurement Strategy Development

The planned procurement strategy is building on the current LTA’s

procurement strategy, including refinements and additional elements to:

• improve the programmatic outcomes,

• improve efficiency in the process,

• incorporate sustainable procurement elements within the overall strategy

and evaluation,

• achieve a healthier and more sustainable supply base of affordable,

quality assured safe injection supplies,

• manage identified risks in a more effective manner,

• leverage the procurement function to address supply and delivery

challenges, and

• prepare for any policy changes on supply.

Development Approach for the Procurement Strategy

and Proposed Changes

In determining the appropriate approach and identification of proposed

changes for the upcoming procurement, we:

– reviewed current and planned Injection Safety policy changes,

– assessed the success of current procurement strategy,

– reviewed quality assurance and technical requirements,

– undertook a supplier survey,

– assessed identified risks,

– reviewed the strengths and challenges currently faced within SIE supply, and

– identified opportunities for improved efficiency.

Shifts in the Procurement Strategy

• Inclusion of Sustainable Procurement (SP) Targets; and inclusion of Sustainability in the Evaluation Criteria (supporting Objective 6)

• Increased Bundled awards to suppliers, with Targets (supporting Objectives 4 & 8)

• Revised Evaluation and Award approach for Reconstitution syringes (supporting Objectives 4 & 8)

• Tender Template and Timeline changes (supporting objectives 1, 3 & 8)

• Proposed New Safe Injection guidance for Reconstitution Syringes (supporting objectives 1 & 2)

• Encourage Product Innovation (supporting objectives 2 and 4)

Procurement Strategy 2018 - 2019 Objectives

1. Ensure an uninterrupted, sustainable supply of affordable products that are in compliance

with the required quality and technical requirements. This is the overarching objective.

2. Strengthen injection safety by (i) reducing the risk of re-use, through a tender strategy that

supports a preference for devices that have an activation of the auto-disabling feature

commencing prior to delivery of the fixed full dose.

3. Maintain a healthy market with multiple suppliers in the markets where this has been

achieved and further improve the healthy market status where this is required, seeking

further reductions in the weighted average price (WAP).

4. Engage Industry to address programmatic and supply challenges, including new

immunization strategies, reducing lead times and increased bundling of SIE offered products

and resultant shipments.

5. Reduce the overall cost to programs through the continued application of a landed cost

evaluation criteria to better assess the full cost to programs.

6. Implementing a more sustainable procurement approach encouraging product innovations

that reduce the overall carbon footprint and waste disposal requirement.

7. Support Bundling of vaccines and injection devices and that the delivery of such is done in

an efficient manner.

8. Improve the efficiency of the tendering, procurement and delivery processes.

1. To ensure an uninterrupted, sustainable supply of affordable products

that are in compliance with the required quality and technical

requirements.

• This is the overarching objective.

• Safe Injection Equipment is a key strategic product group to support

Immunization

• To achieve this, the intent is to

– Award multiple suppliers of quality and technically assured products to

provide a diverse supply base;

– Preposition safety stocks both at the UNICEF Warehouse as well as with

suppliers who will be required to keep a 10% rolling buffer stock based on

their award at all times during the LTA period;

– Ensure emergency response capacity through rapid replenishment capacity

into the CPH Warehouse;

– Meet Country Specific requirements;

Considering overall demand volumes and values of the individual products.

2. Strengthen injection safety by (i) reducing the risk of re-use, through a

strategy that supports a preference for devices that have an activation of the

auto-disabling feature commencing prior to delivery of the fixed full dose.

• UNICEF preference (since 2005) is for immunization Injection devices that

have an activation of the auto-disabling feature commencing prior to delivery

of the vaccine full fixed dose.

• This feature is therefore identified as a preferred feature within the evaluation

criteria where markets have the capacity to support this preference.

• Since 2009 UNICEF has been able to apply its preference for an early

activation of the disabling mechanism on all the awarded Long Term

Arrangements.

• In immunization, for freeze-dry vaccine reconstitution devices: offering the

reuse prevention featured (RUP) devices with or without fixed needle to

eliminate risks of reuse.

• Waste disposal of sharps: offering the sharps safety boxes for the disposal of

all used sharps devices (AD, RUP, RUP/SIP) for proper disposal and

collection.

Proposed new Safe Injection recommendation for

Reconstitution Syringes (supporting objectives 1 & 2)

• Transition from Disposable to RUP syringes for Reconstitution

commenced in 2008 but appears to have stagnated.

• Planned new guidance is intended to support the transition from

Disposable to RUP syringes, improving Injection Safety.

3. Maintain a healthy market with multiple suppliers in the markets where this

has been achieved and further improve the healthy market status where this

is required, seeking further reductions in the weighted average price (WAP).

• Affordable pricing is key in these markets as funding is one of the key

constraints in many EPI programs in countries where UNICEF is present.

• The WAPs have reduced over time based on the increased demand,

competition, product innovation and a shift in the supplier base.

• The evaluation criteria and tender approach have evolved over prior tender

rounds where these objectives have been achieved.

• The tender approach has been developed to encourage a healthy market

and stimulate competition to support the objective of further reducing the

WAP.

• The inclusion of all SIEs in one tender and options for industry to submit

alternative pricing options within this tender round are included to support

affordable pricing with the objective of further declines in the WAP.

4. Engage Industry to address programmatic and supply

challenges, including reducing lead times and increased bundling

of SIE offered products and resultant shipments.

• Through their own established infrastructure and resources, Industry may

be able to provide more effective solutions to the programmatic

challenges faced by UNICEF.

• The RFP modality provides the opportunity for industry to leverage their

individual comparative advantage in providing solutions that may address

programmatic issues of:

– bundling deliveries where industry has access to the full range of

products required,

– industry potentially offering solutions to address long shipment lead

times which is often aggravated by late funds release.

– As well as for industry to submit proposals that address price drivers

within in their costing structure to make the proposers proposals

more competitive.

• Seeking to achieve further efficiencies in the SIE delivery process

5. Reduce the overall cost to programs and in support of sustainable

procurement through the continued application of landed cost evaluation

criteria to better assess the full cost to programs.

• Landed cost evaluation to ensure a fair evaluation considering the broad

geographic spread of the supply base and the demand profile.

• Implemented successfully in the past two tender rounds and remains

relevant

• Evaluation based on 7 ports reflective of UNICEF demand profile

• Identified Ports are: Apapa, Matadi, Douala, Dar-es-Salaam, Djibouti,

Bandar Abbas, Karachi

6. Move towards a more sustainable procurement (SP) approach

encouraging product innovations that reduce the overall carbon footprint

and waste disposal requirement.

Sustainable Development Goals Launched

6. Move towards a more sustainable procurement (SP) approach

encouraging product innovations that reduce the overall carbon footprint

and waste disposal requirement.

Source: UN Sustainable Procurement Training

6. Move towards a more sustainable procurement (SP) approach

encouraging product innovations that reduce the overall carbon footprint

and waste disposal requirement.

The Joint UN Agencies Statement of Intent ‘Move towards a more sustainable procurement approach encouraging product innovations that reduce the overall carbon footprint and waste disposal requirement’

In the tender round the intent is to focus on multiple elements crossing the 3 pillars

(Environmental, Economic, Social) of SP and extending along the supply chain,

including

• Influencing Industry’s Sustainable Procurement Policy: Continue driving for green

manufacturing (QMS) and address social SP elements through requiring industry to

report on such;

• Implementation of Sustainable Procurement Criteria within the Tender activity,

including SP elements in the tender evaluation (Weight, Volume, Local

manufacturing); GTC requirements

• Internal process: introduce step one of e-tendering through switching from Paper

based to Electronic bid submissions.

Leveraging the procurement function to reduce the resultant waste generated.

6. Move towards a more sustainable procurement (SP) approach

encouraging product innovations that reduce the overall carbon footprint

and waste disposal requirement.

UNICEF shipped over 30,000m3 (5,500 tons) of SIE in 2016, generating contaminated waste, requiring disposal.

Local manufacturers are proposed to be considered as manufacturers in UNICEF program countries

that have not received an award from UNICEF previously. Preference for ‘On continent’ (Africa)

production

The comparative volumes of the technical acceptable products will be reviewed as well

as the overall weight of the products.

These two components both impact on

i. The volume of product to be shipped around the world and associated

environmental impact

ii. The weight of the product (and packaging) that needs to be disposed of

Both elements are under the control of the producer in terms of design.

Inclusion of Sustainable Procurement (SP) Targets; and inclusion of

Sustainability in the Evaluation Criteria. (Supporting Objective 6)

Target: 20% of awards made to new Local Manufacturers by 2021(i) stimulate local production facilities to reach the required quality standards and (ii) to grow local production.

Sustainability score will make up thirty (30) percent of the overall commercial score.

7. Support bundling of vaccines and safe injection materials

and that the delivery of such is done in an efficient manner.

• The Bundling Principle denotes that for each vaccine dose delivered, there are a sufficient number of AD syringes, reconstitution syringes (where applicable) and safety boxes.

• Analysis on 2016 deliveries shows the efficiency and price gains of bundling products at the supplier, increasing transactional efficiency, reducing the clearance and handling issues by reducing the number of shipments and eases consolidation at country level for onward distribution.

• Further opportunities for increased delivery efficiency are possible through (i) increased bundling and (ii) a revised approach to the resultant supply agreements.

Recommend the establishment of a Supply Target – 80% of awarded quantities are bundled by 2021

Resultant proposed contracts

I. Target bound Long Term Arrangements (LTAs) for AD syringes and Safety boxes

- to enable bidders to submit proposals leveraging their comparative advantage to better meet the objectives of the tender;

II. Time bound LTAs covering the immunization demand for the associated disposable and RUP syringes used for the reconstitution of vaccines established with the same supplier base awarded for the AD syringes and Safety boxes

III. Time bound LTAs for the RUPs, Disposable syringes and Needles for kit packing,

- based on the low volumes and value and highly variable demand levels (driven by Health kit demand).

8. Improve the efficiency of the tendering and

procurement process

• Due to delays in the issuance of the Tender and delays in the evaluation process awards were only made in late November 2015 in the prior tender round.

• As corrective measures we propose (i) adjustments to the proposed timelines and (ii) to switch from a hard copy bid submission to an electronic bid submission.

• A check list will be shared with bidders for completion to ensure that all required documentation is submitted for evaluation purposes.

• A response template will be included for quantitative data to reduce the burden of data entry for evaluation which delayed the process in the last tender round.

• Scanned signed copies and soft copies will be requested to be submitted.

In addition to the efficiencies listed under Objective 7

Tender Summary Activities and Timelines

ACTIVITY TIMELINE

Draft procurement strategy Mid March 2017

Industry consultation 28-29th March 2017

Issuance of Tender 1st May 2017

Closing of tender 15 June 2017

Clarifications and evaluation Mid June – End August 2017

CRC approval CRC Submission 6th

September 2017

Announcement of awards End Sep 2017

Commencement of LTAs 1st January 2018

Discussion

Thank you!