Procurement Services Agent for the Voluntary Pooled Procurement Mechanism Core Health Products

Transcription

1 Issue Date: Tuesday, 12 July 2011 RFP Closing Date: September 26, 2011 RFP Closing Time: 12 Noon, Geneva Time Subject: Request for Proposal (RFP) - TGF Procurement Services Agent for the Voluntary Pooled Procurement Mechanism Core Health Products The Global Fund to Fight AIDS, Tuberculosis and Malaria ( The Global Fund ) is seeking proposals from qualified suppliers to submit proposals to act as a Procurement Services Agent ( PSA ) for the Global Fund s Voluntary Pooled Procurement mechanism ( VPP ) for core health products as more fully described in Attachment A (Statement of Work). This RFP consists of this cover letter and the following sections: Section A: Scope of Work Description of the Services required Section B: Evaluation Criteria Section C: Guidance for Suppliers Section D: Key Terms of PSA Contracts Section E: Conflict Of Interest Declaration Form The Global Fund Standard Terms and Conditions form an integral part of this RFP and will be included in any contract resulting from this solicitation. Submitting a proposal in response to this RFP constitutes acceptance of these terms and conditions, found at this link on the Global Fund website: To be eligible as a supplier with the Global Fund, any organization or individual must comply with the Policy on Ethics and Conflicts of Interest for Global Fund Institutions and the Supplier Code of Conduct. Both are located on the Global Fund website at the following link: Proposals must be received no later than 12 noon Geneva time on the closing date. Unless otherwise indicated, proposals shall be submitted by and formatted in Microsoft Word,.pdf and/or Excel to: Orion.Yeandel@theglobalfund.org and Please submit two separate s, one containing your cost proposal and one containing your technical proposal. Both the subject line of your and the attached document must be labelled as follows: Your organization name technical proposal TGF Your organization name cost proposal TGF Any questions or clarifications regarding this RFP should be submitted in writing via to the undersigned. Sincerely, Orion Yeandel Relationship Manager

2 SECTION A: STATEMENT OF WORK Title: TGF Procurement Services Agent for the Voluntary Pooled Procurement Mechanism Core Health Products 1. Background The Global Fund to Fight AIDS, Tuberculosis and Malaria, a foundation established under the laws of Switzerland (the Global Fund ), is an unique global public/private partnership dedicated to attracting and disbursing additional resources to prevent and treat HIV/AIDS, tuberculosis and malaria. This partnership between governments, civil society, the private sector and affected communities represents an innovative approach to international health financing. The Global Fund works in close collaboration with other bilateral and multilateral organizations to supplement existing efforts to combat these three diseases. Since its creation in 2002, the Global Fund has become the dominant financier of programs to fight AIDS, tuberculosis and malaria, with approved funding of US$ 21.7 billion. To date, programs supported by the Global Fund have saved 6.5 million lives through providing AIDS treatment for 3 million people, anti-tuberculosis treatment for 7.7 million people and by distributing 160 million insecticide-treated nets for the prevention of malaria. For further information about the organization and different contents, please consult our web site: Approximately 40% of grant expenditure by the Global Fund is committed to the procurement and management of pharmaceuticals and other health products. Procurement and Supply Management ( PSM ) activities are often identified as key challenges in grant implementation, and may negatively impact grant performance and access to medicines and health products. To address these challenges, the Global Fund Board, in 2007, endorsed a strategic model for voluntary pooled procurement, as the first element of its strategy on market dynamics with the objective of leveraging the buying power of the Global Fund through its grant recipients to influence market dynamics. This model includes the Voluntary Pooled Procurement mechanism ( VPP ), and Capacity Building Services/Supply Chain Management Assistance ( CBS/SCMA ) which are coordinated through the Procurement Support Services Team at the Global Fund Secretariat. These complementary tools provide a coordinated approach to support Principal Recipients ( PRs ) improve their grant performance through resolving procurement bottlenecks and supply chain management challenges. VPP is a short-term strategy aimed at ensuring a cost effective and efficient procurement; whereas the CBS/SCMA is a longer term strategy for strengthening procurement and supply management systems. The VPP mechanism became operational in June 2009 with two procurement agents selected by the Global Fund through a competitive process to manage the operational process. By the end of 2010, Principal Recipients from 40 countries across all geographic regions representing 74 grants utilized the VPP mechanism with an aggregate confirmed order value of approximately US$ 500 million - of which approximately 90% by value spent was on VPP core health products. The health products that can be procured through the VPP mechanism are categorized as core health products and non-core health products. The VPP core health products are: Anti-retroviral medicines ( ARVs ); Artemisinin-Combination therapy medicines ( ACTs ); Long-lasting insecticide treated nets ( LLINs ); Rapid Diagnostic Tests for malaria; and Rapid Diagnostic Kits for HIV. 2 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

3 In addition, Principal Recipients may use VPP services to procure additional products that are not a key part of the VPP mandate but are critical to the PR for program management and grant implementation. These products are collectively categorized as VPP non-core health products and include: Medicines for opportunistic infections; Non-ACT antimalarial medicines; Diagnostic tests and reagents related to HIV, TB and malaria programmes (other than rapid diagnostic tests for malaria and rapid diagnostic kits for HIV which are core health-products); Laboratory and medical supplies and equipment; Condoms; and Other pharmaceutical products not included in the list of core and non-core items. Table 1: Value of confirmed orders for core products through the VPP mechanism 1 Core health product group Confirmed orders; U$ million June- December June 2009 December 2010 ARVs ACTs LLINs Rapid diagnostic kits for HIV Rapid diagnostic tests for malaria Total core products Table 2: Cumulative list of countries utilizing the VPP mechanism (June 2009-December 2010) Global Fund Region Eastern Europe and Central Asia Latin America and Caribbean Middle East and North Africa Eastern Africa Countries Armenia Georgia Macedonia Brazil Colombia Dominican Republic Haiti Honduras Nicaragua Djibouti Niger Yemen Burundi Comoros Global Fund Region West and Central Africa South and West Asia East Asia and Pacific Countries Cameroon Cape Verde Congo Cote D'Ivoire Gambia Guinea Bissau Liberia Nigeria Togo Bangladesh Pakistan Cambodia China East Timor Uganda Indonesia Southern Africa Malawi Laos 1 Prior to 2011, Rapid tests for malaria and Rapid kits for HIV were classified as non-core products. This change in classification may bring about some apparent data inconsistencies in different reports. 3 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

4 Mozambique Swaziland Zambia Mongolia Papua New Guinea Philippines Thailand Vietnam In May 2011, the Global Fund Board endorsed a Market Shaping Strategy 2 which acknowledged the critical role of the Global Fund, as the primary financier of essential health products, in shaping markets to maximize access to health products at affordable and sustainable prices. This Strategy will initially be applied to antiretroviral medicines, followed over time by other product groups and aims to contribute to improved health outcomes, accelerate access to superior products and achieve significant cost savings. Under this Strategy, the Global Fund will also prioritize strategic market interventions to sustain pediatric antiretroviral treatment. VPP is one of the Global Fund s main tools to implement the Strategy. More information on the Procurement Support Services including VPP can be found at Starting in 2012, the PSA s management team handling procurement services for core health products will be separate and distinct from the management team handling the procurement services for non-core health products. This separation will enable the core health products management team to provide more focused attention to the market dynamics objectives of VPP which apply to core health products while still permitting Principal Recipients to obtain procurement services for non-core health products which are critical for program management, grant implementation and grant performance. The relevant PSA will be acting as the procurement agent of the PR in respect of the VPP procurements, and although the Global Fund may facilitate communications between the PR and the PSA, the Global Fund will not be acting as the agent or contractor of the PSA or the PR. This RFP covers VPP core health products only - a separate RFP has been or will be shortly issued for non-core health products (TGF ). 2 See Market Dynamics Committee Report to the 23 rd Board Meeting at 4 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

5 2. OBJECTIVE The purpose of this RFP is to identify qualified applicants to act as Procurement Service Agent(s) ( PSAs ) for relevant Principal Recipients participating in VPP. Selected PSAs will manage the procurement (including the purchase and delivery) of the VPP core health products specified from eligible manufacturers. The major duties for which PSAs will be responsible for arranging and managing include: conducting and/or managing the competitive selection process for, and contracting with, suppliers for VPP products; processing requests and purchase order placement and execution on behalf of Principal Recipients; consolidating purchase orders; freight forwarding (including preparing shipping documents, customs clearance, inland transportation and such other activities as agreed to between the PSA and Principal Recipients) and/or arranging shipments and deliveries between suppliers and Principal Recipients; providing quality assurance and quality control for VPP products (including facilitating sampling and testing of VPP products as required by the Global Fund Quality Assurance Policy); monitoring suppliers; making payments to suppliers for the products purchased by the Principal Recipients; inputting purchase and supply data into the Global Fund s Price, Quality and Reporting ( PQR ) data system; and providing periodic technical and financial data and reports to the Global Fund Secretariat. The Global Fund intends to establish a contractual arrangement with one or more PSAs for core health products. Only one PSA will procure products within a health product category (as described in Table 3) and a PSA must manage all products within a core health product category. The PSA under VPP shall act as the procurement agent of the relevant Principal Recipients in relation to the procurement of the VPP products 3 for the Principal Recipients, and not as agents of the Global Fund. Neither the Principal Recipients nor the PSAs shall have the ability to bind or represent the Global Fund. PSAs retain complete responsibility for the sourcing and procurement of all products procured and supplied under the VPP mechanism. 3 VPP Products are core and non-core products as defined in this RFP. 5 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

6 3. SCOPE OF WORK The current process for PRs to participate in the VPP mechanism including the roles and responsibilities of the various actors is described in the VPP Process Document found on It should be noted that this document describes the current processes which are under review and are subject to change. Proposals submitted in response to this RFP should not be made solely in relation to current processes and applicants are encouraged to propose alternative arrangements to enhance the effectiveness of the VPP mechanism in their proposals. To achieve the above mentioned Objectives referred to in Section 2 above, the PSA shall perform the following key tasks: 1. Establish and/or maintain and/or implement supply agreements with eligible manufacturers/ suppliers/ wholesalers; 2. Enter into and maintain shipping/freighting agreements with shipping and freight forwarding agents; 3. Process requests and place purchase orders from PRs, aggregate demand and consolidate orders, where feasible and schedule deliveries according to PR needs; 4. Consolidate orders, purchase the products, schedule and arrange shipment and delivery, including insurance; 5. Arrange for payment with manufacturers/suppliers; 6. Coordinate the sampling of products for quality control, where required; 7. Monitor the performance of the manufacturers/suppliers; 8. Input data to the Global Fund Price Reporting Mechanism; and 9. Provide periodic technical and financial data and reports to the Global Fund Secretariat. The PSA will be required to enter into a contractual agreement with the Global Fund (in the form approved by the Global Fund) setting out the main obligations and responsibilities of the PSA with respect to VPP as set out below. The template form of that agreement is currently under development in consultation with relevant stakeholders. It is expected that all successful applicants will sign that agreement in substantially the same template form. Further details of the Key Terms of VPP are set out in Attachment C below. By submitting a proposal, each applicant acknowledges that the Global Fund is in the process of revising its contractual agreements with PSAs. Each applicant hereby agrees that it will not rely on any of the terms and conditions contained in any such contract between the Global Fund and a PSA or existing VPP procedure. Each applicant further acknowledges that if such prior contract is used as a precedent for the contract entered into with respect to the activities referred to in this RFP, the terms and conditions contained therein and related VPP procedures may be revised in the absolute discretion of the Global Fund. 3.1 The PSA shall manage the procurement service for VPP core health products The PSA will be expected to offer procurement services for a range of VPP core health products (outlined in Table 3) based on individualized requests received from the Principal Recipients (PRs). Procurement must be conducted in accordance with the relevant Global Fund grant agreement and prevailing Global Fund Policies on the Procurement and Supply Management of Health Products 4 and other relevant E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

7 international good procurement practices including those developed by WHO and the Interagency Pharmaceutical Coordination Group. The PSA will be acting as the procurement agent of the relevant PR in respect of VPP procurements, and although the Global Fund may facilitate communications between the PR and the PSA, the Global Fund will not be acting as the agent or contractor of the PSA or the PR. This means that the PSA must liaise closely with the PR to ensure that the PR is kept updated on VPP activities and relevant instructions are obtained from the PR. Table 3: Categories of core health products and Global Fund Quality Assurance Policy eligibility Core health product category Antiretroviral pharmaceutical products (ARVs) Artemisinin-combination therapies (ACTs) Long Lasting Insecticidal (mosquito) Nets (LLINs) Rapid diagnostic tests for malaria Rapid diagnostic kits for HIV Includes all products that are included in 5 Global Fund Quality Assurance Policy for Pharmaceutical Products WHOPES recommended when linked to WHO specifications for their quality control Global Fund Quality Assurance Policy for diagnostics 3.2 The PSA shall translate results of the Global Fund s Market Shaping Strategy into procurement outcomes The Global Fund Secretariat is responsible for implementing the Global Fund s Market Shaping Strategy which aims to maximize access to health products at affordable and sustainable prices. This will include facilitating negotiations and consultations with manufacturer s suppliers, partners, and other stakeholders. This may include the establishment of master supply/ long term agreements between the Global Fund and manufacturers The PSA will be responsible for translating the results of the negotiation and consultation with manufacturers and other stakeholders into procurement processes and outcomes The PSA will support consolidating forecast data from the PRs. 3.3 The PSA shall assist to establish, maintain or implement master supply/ long term agreements with eligible 6 manufacturers/suppliers for the VPP core health products As part of the implementation of the Global Fund s Market Shaping Strategy, the Global Fund may decide to establish master supply/ long term agreements directly with manufacturers Currently master supply agreements have been established between the incumbent PSAs and manufacturers which set out arrangements for: ceiling prices, maximum leadtimes, supplier performance requirements and other terms and conditions related to the supply of ARVs and ACTs. 5 Or subsequently the prevailing Global Fund Quality Assurance Policy: 6 Eligible in terms complying with the applicable Quality Assurance Policy as summarized in Table 3. 7 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

8 3.3.3 According to the provisions of each of the current master supply agreements, if the underlying contractual relationship between incumbent PSAs and the Global Fund is terminated, and the Global Fund requests another entity to assume the responsibilities of the incumbent PSA, then the replacement PSA may be substituted for the incumbent PSA, for the remainder of the term The replacement PSA shall ensure continuity of the ceiling prices 7, maximum leadtimes, supplier performance requirements and other terms and conditions for ARVs and ACTs as specified by the Global Fund either through their existing arrangements, or through assuming responsibilities of the incumbent PSAs referred to in sections and above In addition, and depending on the market structure of a specified product, the PSA will implement appropriate mechanisms to ensure that each order receives the lowest possible price and/or best value, and delivery conditions in an open and transparent manner. 3.4 The PSA shall process and execute orders from PRs In order to support the processing and execution of orders, the PSA must have relevant experience and technical knowledge about the core products including being able to support the PR in clarifying product technical specifications 3.5 The PSA shall ensure compliance with the Global Fund Quality Assurance Policies for procurement practices and health products8, 9, The PSA shall ensure compliance with National pharmaceutical and health product rules and regulations; and other National and International Laws and Regulations 3.7 The PSA shall arrange for a buffer stock of specified products The Global Fund may request the PSA to arrange and manage a buffer stock of specified products in accordance with Good Distribution Practices. 3.8 The PSA shall make arrangements for shipment and insurance up to the point of delivery based on the terms and conditions agreed with the PR For certain products delivery to the administrative level below the national level may be required by PRs. 3.9 The PSA shall make all arrangements for payment of suppliers and contractors 3.10 The PSA shall provide all the necessary information related to the VPP process to the PR and Global Fund Secretariat The Global Fund intends to establish an information system for managing VPP order and procurement information, as well as associated market related information. Once this system is established the PSAs will be required to submit both real-time and periodic data for this system in a format and frequency to be agreed with the Global Fund In the interim, the PSA will make available real-time data to inform the PR and Global Fund Secretariat of each step in the order process including order placement by the PR, receipt of payment, expected delivery dates, sampling process and shipping 7 To provide an indication of the celling prices ceiling prices for ARVs are at or below those published by the Clinton Health Access Initiative (May 2011): E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

9 details. Corresponding documentation will be systematically provided to the PR and when required to the Global Fund. The Global Fund will notify the PSA regarding the format and frequency of submission of this information The PSA will periodically provide a dataset related to the procurements and each step in the procurement process to the Global Fund Secretariat. The specific metrics, frequency and format will be agreed between the Global Fund and the PSA. An illustration of the scope and frequency of such data can be found in the document summarizing the VPP Monitoring and Evaluation Framework which can found at: en/ The PSA will be responsible for reporting the PR s procurement of those health products required to be entered into the Global Fund s Price and Quality Reporting mechanism The PSA shall develop Standard Operating Procedures The PSA will be required to develop in consultation with the Global Fund, a standard operating procedure (SOP) that outlines the key stages in the VPP procurement, order and payment management process including details of the interactions between the PR, PSA and the Global Fund. The SOPs must detail: responsibilities of all parties involved in the process; service level agreements for key steps in the procurement process; communication channels; templates for key documentation including the format of price quotes; final invoices; reporting; description of the scope and format of data described in 3.10; and indicators for monitoring performance. The content of the SOP must be approved by the Global Fund Secretariat within 120 days of the finalization of the PSA s contract with the Global Fund. A description of the key elements of the SOPs should be submitted as part of the Proposal The PSA will be required to have in place detailed procedures for the entire order process from the time the PR makes a request to confirmation of receipt of the delivered product and final invoicing, which shall include refund and reimbursement arrangements The PSA shall reconcile for each grant transaction and issue a final invoice 3.13 The PSA shall provide periodic technical and financial reports to the Global Fund E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

10 4. SUPPORT PROVIDED BY THE GLOBAL FUND SECRETARIAT 4.1 The Secretariat will facilitate the direct payment to the PSA for VPP procurements conducted for a PR on behalf of the relevant PR, subject to the terms of the relevant Grant Agreement between the Global Fund and the PR and the policies and procedures of the Global Fund. It is expected that the payment to the PSA will be a direct payment of the PR s grant funds from the Global Fund s Trustee Account to the PSA, upon receipt of a direct payment request from the PR validated by the Local Fund Agent and the Secretariat. The Operational Policy Note on Voluntary Pooled Procurement which describes the policies and processes related to Voluntary Pooled Procurement especially regarding funding flows can be found in the Operational Policy Manual found at: Notwithstanding facilitating payment by the PR and facilitating communications between the PSA and the PR, the Global Fund will not be responsible for any of the contractual or other obligations of the PR to the PSA. 4.2 The Secretariat is evaluating further appropriate options for advance, direct payment and procurement fee arrangements in order to be able to better align the disbursement and procurement timelines with the aim of improving the efficiency of procurement, and taking into account the requirements of manufacturers. Arrangements to safeguard grant funds paid to PSAs and to provide appropriate incentives for PSAs are also being considered. Applicants may wish to provide input regarding these arrangements through their submissions in response to this RFP. 4.3 While the Secretariat may at times facilitate communications between the PSA and the PR, the Global Fund shall not be the agent or contractor of the PSA or the PR in connection with any VPP activities. Despite any assistance provided at times by the Secretariat, each of the PSA and the relevant PR are solely responsible for ensuring that they are informed of each stage in the procurement process and that they are providing or receiving, as applicable, all necessary instructions and information to complete the procurement process. 5. PERFORMANCE PERIOD The effective date of the agreement between the PSA and the Global Fund will be the date of signature of the Global Fund authorized official. The contractual agreement will be in place for an initial period of three years. The contractual agreement will contain options for additional periods of not more than one year for a maximum of three additional years. 10 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

11 SECTION B: EVALUATION CRITERIA The Global Fund will establish an evaluation panel to assess the extent to which proposals submitted meet the evaluation criteria contained in this RFP. The evaluation criteria are divided into technical and cost factors. In assessing each proposal, the Global Fund may allocate greater importance to technical factors than to cost factors. This is reflected in the weighting that the Global Fund will employ in assigning a total score to each proposal. While the technical score will be significantly more important, cost will be a factor in the evaluation and the closer the technical evaluation scores of the various proposals are to one another, the more important cost considerations will become. Therefore, the cost proposal may become a determinant factor in making award. Following the technical review process, a review of the cost proposals will be conducted on technical proposals within the competitive range. A technical proposal may be considered within the competitive range when it receives at least 70 out of 100 points maximum available. The proposal shall be prepared in two separate parts: (1) Technical proposal which shall address technical aspects only; and separately (2) Financial proposal which shall present the costs and address related issues such as roles and responsibility of all parties involved. Proposals must be submitted in English with each page numbered consecutively. The Global Fund invites any type of organization, including joint ventures and consortia to participate in full and open competition in connection with this RFP. Any consortia or joint venture shall have a separate legal personality that can enter into contracts. If two or more parties have formed a partnership or joint venture or consortia for the purposed of submitting a proposal under this solicitation and, if selected, would perform the contract as a single entity, they must submit, as an attachment to the Cost proposal, the Corporate Charter, By-Law, or joint venture or Consortia or Partnership Agreement. In addition, the principals of the joint venture or partnership agreement must agree to be jointly and severally liable for the acts or omissions of the other. In the absence of this, the Global Fund shall at its discretion recognize one firm in the partnership or joint venture as a prime contractor or lead agent responsible and liable for the other partners or joint venturers, and the others as sub-contractors. Applicants will therefore be required to identify each subcontractor by name and location with a description of their specific work to be performed. Supportive documentation shall be provided for each sub-contractor (including all sub-contracts), consortia or for any other type of consulting arrangements proposed. The following information shall also be provided: a) Company name of each sub-contractor, or the individual names in the case of independent Consultants; b) Names of each subcontractor corporate officers; c) Names of each sub-contractor s key personnel for this contract effort; and d) Scope of work to be performed by each sub-contractor/consortia members or consultants. Contract Management 11 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

12 Applicants must identify: (i) the functional organization that is to provide complete contract management and control and (ii) the policies in place to manage the contractual aspect. Contractual authority of the team leader or project manager shall also be described. The Global Fund may also enter into agreements with multiple agents providing the full range of services for the VPP core health products in relation to the various categories as identified in Table 3. Conflicts of Interest Each applicant must promptly notify the Global Fund in writing of any actual or potential conflict of interest concerning itself or any of its affiliates or any of their employees, contractors or agents in respect of this RFP; any potential roles and interactions with the Global Fund or Global Fund Core Structures 12 - including for example such as being a Principal Recipient; Sub-Recipient; involvement in Local Fund Agent work; and undertaking Global Fund consultancies; and the activities proposed to be conducted under VPP, (including without limitation those relating to its staff and any subcontractors). The conflict of interest declaration can be found at: Section E. Proposals shall be Valid for 90 days. Technical proposal The technical proposal should address how the applicant intends to carry out the Statement of Work (Attachment A). Applicants must submit a concise structured proposal that reflects a clear understanding of the nature of the work being requested, the environment in which the work must be performed, as well as innovative approaches to maximize efficiency and reduce bottlenecks. Where appropriate, the presentation of information in a tabular format is encouraged. Amongst other matters, the technical proposal, must distinctly present the following sections and sub-sections (categorized and labeled as below). a) Understanding of and approach to implement the statement of work (40 points) The proposed approach should be well-conceived, technically sound, and present a feasible means to achieve all the objectives and considerations identified in the statement of work. Innovations and suggestions to improve VPP processes are encouraged. The applicant should provide the level of detail and evidence that they consider necessary to fully explain or justify the proposed approach. The proposal must include: i. A maximum one-page summary of the scope of health products, services and approach offered in response to this RFP. ii. A detailed description of the quality assurance system for procurement. iii. A detailed description of the proposed procurement approach for each category of core health product category offered (as described in Table 3) including how the Global Fund s Procurement and Supply Management Policies could be implemented to achieve the competitive and transparent purchasing of quality assured products at the lowest possible price and/or best value; and in a timely manner; and in accordance with national and international laws. iv. A proposed approach for: a. Supporting the Global Fund Secretariat to implement the Global Fund s Market 12 Global Fund Structures As described at: 12 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

13 Shaping Strategy including how the proposed approach described above could potentially evolve to better optimize best value, timely availability, market sustainability and to help manage financial, reputational and other risks to the PSA, PR and the Global Fund, for each category of core health product category b. Ensuring continuity of the manufacturer ceiling prices, maximum lead-times, manufacturer performance requirements and other terms and conditions for ARVs and ACTs established by the current PSA c. When required, procuring products covered by master supply/ long term agreements from suppliers who have not signed a master supply/ long term agreement d. Maximizing the benefits of economies of scale e. Monitoring supplier performance and utilization of this information f. Supporting the Global Fund to obtain and consolidate product forecast information g. Ensuring coordination of the key activities described in this RFP including across requests for different product groups for which the applicant would be responsible h. Maximizing the efficiency, including minimizing the administrative burden of the procurement process from the request from the PR through to acknowledgement of receipt at the final destination i. Encouraging competitive selection of VPP products and value for money, within maximum price arrangements j. Arranging cost effective and efficient freight arrangements including minimizing order fragmentation and physically consolidating orders k. Managing and responding to emergency/urgent/late requests l. Tools and approaches that could be potentially made available to the VPP mechanism and Principal Recipients to support procurement activities (including amongst others for forecasting, order placement, identifying specifications, technical information etc.); innovative approaches utilizing communications technology are encouraged. m. Developing the SOP described in section 3.11; propose an outline content including an outline of the potential scope and format of data described in section 3.10 n. Ensuring that PRs meet all their responsibilities to ensure all procurement (and supply management) activities conform to Global Fund requirements (including the applicable Global Fund grant agreement) o. Presenting periodic technical and financial report; propose and outline content p. Scaling-up or scaling-down operations should the level and/or value of requests from PRs be greater or less than envisaged. b) Qualifications and experience of Applicant s team (40 points) Proposals should describe the extent to which the applicant s proposed team collectively includes adequate numbers of suitably qualified and experienced staff with appropriate technical knowledge to manage the services outlined in this RFP. The proposed level of effort and overall personnel profile including an overview of the structure of the team that will be responsible for delivering the services with details of the internal reporting mechanisms between team members should be presented. For the key personnel, detailed CVs must be submitted. i. Number and level of availability of personnel with relevant technical 13 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

14 qualifications involved in day-to-day operations (including amongst others, experts in pharmaceutical products; diagnostic products; LLINs; quality assurance; procurement; freight and logistics; finance). ii. Number and level of availability of personnel with relevant technical qualifications available for expert technical consultation on an ad-hoc basis for each category of core health product category. iii. Number and level of availability of personnel to be able to routinely correspond to PRs as appropriate in at least English, French and Spanish on procurements for each category of core health product category. iv. Details of the proposed location(s) of operation including capability to establish facilities for supplier management, order consolidation and freight operations close to the main manufacturing locations; and willingness to have a representation in Geneva. c) Institutional capability and past performance (20 points) The Global Fund will evaluate the applicant s institutional capability and experience and areas of expertise, as well as past performance in conducting work similar to the services solicited in this RFP. If required, anonymity can be preserved. Past performance and institutional information shall be included in attachment D to this RFP. In addition to completing this form PSAs shall provide the following information: i. Details of current contracts, and other current activities. ii. List of the categories of pharmaceuticals and health products purchased and supplied internationally including current indicative prices being achieved and typical timelines for the procurement process, obtaining the products from supplier, and freight times to illustrative destinations in different Global Fund regions (as described in Table 2). iii. Indicative list of countries purchased from, and countries supplied to and provide details of the pharmaceutical and other health products purchased and supplied internationally and the approximate value, during the past three calendar years. iv. Description of quality assurance system in place for procurement; and to ensure the quality of pharmaceutical and health products purchased and delivered. v. Description, management and outcomes of any master supply/ long term agreements with manufacturers. vi. Description of the approach taken to manage procurements where there may be issues related to intellectual property and potential infringement of intellectual property rights. vii. Description of IT system for tracking orders and managing the procurement process. viii. Description of freight arrangements. ix. Examples of tenders conducted or offered for health products with a description of the process and the outcomes. x. Examples of tools made available to customers to facilitate timely procurement. xi. Description of experience in monitoring supplier performance. xii. Description of any storage warehouse being used and managed according to Good Distribution Practices. 14 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

15 xiii. xiv. xv. xvi. xvii. Description of arrangements to receive and safeguard significant advance payments of funds for VPP procurements, taking into account manufacturer requirements (including safeguarding against PSA and manufacturer insolvency risks, VPP reimbursements and refunds, and procurement fee incentive mechanisms). Description of engagement with relevant technical partners. Description of arrangements to identify and mitigate against financial, legal and reputational risks to the PSA, PR or the Global Fund in relation to VPP procurements (such as procurement delays, stockouts and expiries, budget and cost overruns, quality assurance compliance and conflict of interests). Description of any current and potential roles or interactions of the applicant, staff or sub-contractors or any of their affiliates with the Global Fund or Global Fund Core Structures 13 (including for example such as being a Principal Recipient; Sub-Recipient; involvement in Local Fund Agent work; and undertaking Global Fund consultancies). The description should include the measures that will be put in place to mitigate against any actual or potential conflict of interest. Conflict of Interest Declarations (Section E) for the applicant and its affiliates and any of their relevant staff, agents or contractors; and key personnel detailed in section b) Qualifications and experience of applicant s team. Financial proposal Proposed costs will be evaluated for reasonableness, allowability and allocability. This analysis is intended to determine; the degree to which the costs included in the cost/price proposal are fair and reasonable, and are linked to the technical proposal. The financial proposal must contain the following: a. Subcontracting plan (if any); b. Applicants must provide cost of the services detailed in the scope of work as a fixed percentage. The fee shall only be levied on the purchase price of the health products ordered and not on the transport and insurance costs for the delivery of the health products in the beneficiary country. Alternative incentive arrangements will be considered to ensure value for money in procurements; and c. Indicative interest rates that will be accrued on advance payments made to the PSA Proposed fee for VPP core health products (may differ per core health product category) should be indicated. Incentive scheme and discount The PSA should propose any workable incentive scheme or a discount system based on, for example, the value of annual orders, for PRs placing orders in advance, or any other options allowing charging the PR below the fixed percentage fee proposed. PSAs are also encouraged to propose additional cost table thus demonstrating alternative options that are innovative and will bring best value to the PRs including how these could ultimately be incorporated into the fixed percentage fee. 13 Global Fund Structures As described at: 15 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

16 General Instructions SECTION C: GUIDANCE FOR SUPPLIERS The Global Fund may, at its discretion, change the closing date, cancel the RFP, or revise the terms of reference, by issuing an amendment to this solicitation. All Amendments to this RFP will be posted on the Global Fund website: It is the Supplier s responsibility to consult The Global Fund website to ensure that they are aware of amendments to this RFP. The Global Fund may (a) reject any or all proposals, (b) accept for award a proposal other than the lowest cost proposal, (c) accept more than one proposal, (d) accept alternate proposals, (e) accept part of a proposal, (f) waive informalities and minor irregularities in proposals received, and (g) cancel this RFP. The Global Fund may award one or more contracts on the basis of initial proposals received, without discussions or negotiations. Therefore, each initial proposal should contain the Supplier s best terms from a cost and technical standpoint. The Global Fund reserves the right (but is not under obligation to do so) to enter into discussions with one or more Suppliers in order to obtain clarifications or additional detail, to suggest refinements in the technical proposal or other aspects of the proposal, or negotiate the cost proposal. The Global Fund will be under no obligation to reveal, or discuss with any Suppliers, how a proposal was assessed, or to provide any other information relative to the selection process. Suppliers whose proposals are not selected will be notified in writing of this fact, and shall have no claim whatsoever for any kind of compensation. This RFP shall not be construed as a contract or a commitment of any kind. This request for proposals in no way obligates the Global Fund to award a contract, nor does it commit the Global Fund to pay any cost incurred in the preparation of the proposal. Suppliers are solely responsible for their own expenses, if any, in preparing and submitting an offer to this Request for Proposal. This would include any costs incurred during functional demonstrations and subsequent meetings and negotiations. In addition to the written proposal, the Global Fund may request suppliers to make oral presentations in English or to participate in a pre-proposal conference. The date, time, and place for such (if any) will be communicated to all eligible suppliers. Information obtained through oral presentations will be considered in the overall evaluation process. Any questions concerning this RFP must be submitted in writing via to: Orion.Yeandel@theglobalfund.org. 16 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

17 HOW TO BEST DEVELOP YOUR PROPOSAL The technical component of your proposal should be concisely presented, structured according to the Technical Evaluation criteria, and should explain in detail your ability, capacity and resources to provide the requested services. When assessing your proposal, we will look for work experience and qualifications which correspond directly to the requirements set out in the scope of work. Although not an exhaustive list, specifics regarding, information on the company, years of experience with respect to the company/organization and its personnel, CVs and licensing or educational qualifications, geographical and field experience, Information Technology capabilities and software expertise, information regarding your availability - are some exemplar areas which should be clearly highlighted in your proposal, where appropriate. (see section B: Evaluation Criteria) It is also important to provide the requisite past performance information as described below. Your contact person for the proposal must be clearly indicated with a contact address and telephone number provided. The cost component must cover all the services requested in the scope of work. The cost tables and accompanying notes must show the composition of all cost elements, including hidden fees and profits. All proposals must be submitted in English. The RFP number and your company name must be clearly indicated in the subject line of your and in the document name as described in the cover letter for this solicitation. Proposals which are incomplete or non-responsive may not be considered in the review process. PAST PERFORMANCE INFORMATION As part of the Technical Proposal, suppliers are required to provide information regarding prior work experience. In preparing your past performance document, you must ensure it contains the following: Three (3) recent contracts executed within the last five years which are similar in nature to the technical requirements of this solicitation. Place and period of performance Information regarding the client and contact details description of the work The Global Fund reserves the right to contact any persons listed in your past performance document in order to gain a better understanding of the supplier s past performance in delivering similar services to former clients. 17 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23

18 SECTION D: KEY TERMS OF PSA CONTRACTS This Attachment C contains an outline of the key principles which are currently under consideration for inclusion in each PSA contract. It is intended to provide applicants with an overview only, and does not represent an exhaustive list of the points that will be addressed in the PSA contracts, nor definitive contractual drafting of those contracts. The Global Fund reserves the right to amend or supplement the principles highlighted in this Attachment C at any time. A number of PSA contracts may be awarded in relation to core and non-core products and the Global Fund intends to use substantially the same contract template for all of these PSA contracts. Accordingly, applicants should raise any material matters relating to the PSA contract terms as part of their proposal, as the Global Fund does not expect there to be protracted negotiation of the PSA contract terms. Applicants are also encouraged to provide input and ideas on these principles and the issues they address. The Global Fund expects to be able to provide a template PSA contract soon after the evaluation of the RFP. Applicants should note that the Global Fund is currently evaluating the VPP mechanism and is expected to recommend policy and procedural changes to the Global Fund s Market Dynamics Committee and Global Fund Board in the fourth quarter of Updates will be provided to applicants as soon as practical after the Global Fund Board meeting. Further changes to the VPP structure and the PSA contracts may result from this evaluation. 1. Compliance with National and International Laws and Regulations The PSA will ensure that the manufacture, procurement, handling, storage, importation and transportation of VPP products, and all contracts related thereto, are consistent with applicable national and international laws, the relevant grant agreement with the PR and Global Fund policies. The PSA contract will contain mechanisms to be employed by the PSA to notify the Global Fund of, and remedy, any inconsistency or noncompliance of which the PSA becomes aware. 2. Compliance with National Pharmaceutical or Health Product Rules and Regulations The PSA will be responsible for ensuring that products procured through VPP at all times comply with national pharmaceutical or other health regulations and, where applicable, are authorized by the national drug regulatory authority in the country in which such products are used following its standard practices for registration (or other forms of authorization, such as authorizations for special use). The cost of the registration of VPP products will not be covered by grant funds. The PSA will encourage relevant manufacturers to register their products in all relevant countries, irrespective of whether registration is a pre-condition for delivery; and will maximize its efforts to create incentive schemes. When a registration waiver can be issued, the PSA must communicate appropriately to the PR to ensure the necessary documentation for registration waiver is submitted on time. 3. Performance Standards The PSA contract will contain provisions requiring the PSA to perform the procurement services in accordance with appropriate industry and professional standards. The Global Fund is also considering the development of specific performance indicators against which the PSA s performance will be measured and the corrective actions that the PSA will need to take in the event of a failure to comply. 18 E r r o r! U n k n o w n d o c u m e n t p r o p e r t y n a m e. 23