Framework for Guiding Investment in Procurement Capacity Development

1. Framework for Guiding Investment in Procurement Capacity Development Jessica Cohen, PATH Brussels, BelgiumMay 19, 2008 Systems Strengthening Working GroupReproductive Health Supplies Coalition

2. Context • Responsibility for contraceptive security shifting from donors to countries • Procurement increasingly considered key to international aid effectiveness • Tools available to assess and implement capacity building • Strategic framework needed to guide donor and country investment

3. Bridging the current gap Broad initiatives:Millennium Development Goals, Paris Declaration, ICPD Programme of Action Strategic framework to guide investment in procurement capacity development Operational strategies and tools:OECD/World Bank Guidelines and Reference Series, DFID RHCS Report, USAID/DELIVER Procurement Strategies for Health Commodities, SPARCHS framework

4. Framework objectives • Identify factors that enable/disable effectiveness of different procurement strategies • Discuss investment options as they relate to short-term/long-term goals and country environment • Identify strategies for strengthening procurement capacity that can optimize likelihood of success and minimize risks

5. Methodology Literature review Interviews with stakeholders • Donors • Country-level procurement personnel • International procurement agencies • Regional coordinating bodies • Nongovernmental organizations Content analysis and framework development

6. Procurement mechanisms and options Mechanisms = who manages procurement • Centralized • Decentralized • Regional Options = how commodities are purchased • International competitive bidding • National competitive bidding • Shopping • Direct purchasing • Pooled procurement • Third-party procurement agent

7. Challenges of national procurement systems Transparency Donor financing Government leadership Policy and regulations Institutional systems Management Staffing Technical capacity

8. Indicators for evaluating mechanisms and options • Impact on costs • Impact on quality • Impact on reliability of supplies • Management capacity • Vulnerability to corruption or political interference • Funding considerations

9. Evaluating procurement options

10. Risk management Low Risk High Risk Cost, quality, and vulnerability Strong Weak Country environment

11. Framework for investing in procurement capacity Consider risk/benefit trade-offs related to: • Country procurement goals: short- or long-term needs • Country environment: weak or strong

12. Short-term vs. long-term needs Short-term needs: 6 to 12 months • Assist with emergency procurement options • Target training to break current procurement bottlenecks • Support direct assistance with a current tender process Long-term needs: 12 months + • Develop tools to assist in planning and execution of procurements • Develop operational procedures and manuals • Develop long-term strategies and staff skills • Strengthen necessary country systems

13. Procurement investments within different environments Strong, supportive environment: • Support procurement options that maximize cost savings, quality, and reliability • Focus capacity building in weakest domains • Explore more innovative procurement strategies Weaker environment: • Support procurement options that can help reduce risks while maximizing cost savings, quality, and reliability • Strengthen basic procurement capacity • Strengthen necessary country systems

14. Framework for strengthening procurement capacity Transparency Donor financing Government leadership Policy and regulations Institutional systems Management Staffing Technical capacity Areas for systems strengthening

15. Transparency Establish clear and open information flows Enact, implement, and enforce professional guidelines, policies, and practices encouraging ethical behavior Design institutional checks on corruption Arrange good public-oversight systems Strengthening capacity at all levels

16. Donor financing Provide longer-term, more predictable commitments to RH supplies Increase harmonization among donors to reduce strain on country systems Support national agendas and ownership of commodity security Strengthening capacity at all levels

17. Strengthening capacity at all levels Government leadership • Donors and international financing groups to support national agendas • Advocate on national level for increased commitment through contraceptive security committees • Advocate on international level for government prioritization and support of commodity security

18. Policy and regulations Ensure contraceptive supplies included on national essential drug lists Standardize national pre-qualification processes and quality control procedures Strengthening capacity at all levels

19. Strengthening capacity at all levels Institutional systems • Develop SOPs and guidelines for procurement processes • Develop necessary communication systems for information exchange.

20. Management and staffing Include managers in skills-building efforts Clearly define roles and responsibilities of supervisors and staff Increase monitoring and evaluation with rewards for good performance Develop greater professionalism of procurement personnel Strengthening capacity at all levels

21. Technical capacity Ensure adequate support and supervision are available and on-going Ensure skills-building is supported by necessary infrastructure and information systems to allow practical use Improve understanding of World Bank rules and procedures Specific technical skill-building to depend on setting Strengthening capacity at all levels

22. Conclusion • Donors and countries must evaluate investment trade-offs related to short-term/ long-term goals and country environment • Investment should support use of procurement options that maximize likelihood of success and minimize risks in country environment • Country-level systems strengthening is critical for ensuring long-term success of any procurement strategy

23. Questions?

24. Thank you Jessica Cohen Email: jcohen@path.org