Understanding how to procure Medical Diagnostic Imaging (MDI) Equipment

1. Understanding how to procure Medical Diagnostic Imaging (MDI) Equipment John Williams | Senior Procurement Specialist Launch of MDI Equipment Procurement Tools February 12, 2019

2. Background • Consultations with industry identified: • low client expertise in medical technology procurement • optimum outcomes not being offered or delivered • lowest price approach to procurement • priority action to build capacity and capability • Market research concluded that the leading procurement practitioners were making “buy” decisions using value based procurement, taking a broad view of costs and benefits

3. Background (cont.) • Procurement Framework’s Core Procurement Principles provided the opportunity to modernize procurement of MDI equipment • Identified a need for customized buyer’s guidance on how to procure MDI equipment • Applying the tools, techniques and approaches in the Procurement Framework to support and optimize procurement solutions and implementation

4. Scope of buyer’s guidance • Products covered: • X-ray • CT • MRI • Ultrasound • PET • Associated services such as support and maintenance

5. Objectives of buyer’s guidance • Practical guide on how to undertake MDI equipment procurement and how to deliver optimal procurement solutions, VfM, and enhanced project outcomes • Overview of the Bank’s Project Cycle, stages in the procurement process and the procurement approaches available to Borrowers • Overview of the MDI equipment market • Analysis of market research findings, with a focus on the issues identified, including procurement-related complaints • Procurement risk analysis, and tools and techniques to support the development and analysis of bids/proposals

6. Content of buyer’s guidance • Market research, evaluation and Industry engagement identified the key issues to be covered in the guidance • Suitable procurement tools, techniques and approaches evaluated to identify how they could improve outcomes • Detailed guidance drafted on how to apply modern procurement tools, techniques and approaches • Outlined alternative procurement methods and bid evaluation • Supports the preparation of a Project Procurement Strategy for Development at an individual project level • Supports selection and use of the right bidding approach

7. Guidance and the Procurement Cycle • Guidance is structured around the Procurement Cycle • Written in a modular structure to aid application

8. Buyer’s guidance - key concepts • Pre-market Engagement • Drafting specifications • Procurement Risk Analysis • Procurement arrangements, specific focus on Request for Proposals • Commercial models, including Managed Equipment Service contracts • Pricing and costing models • Value for Money using rated criteria and total cost of ownership • BAFO / Negotiation • Contract Management

9. Buyer’s guidance - next steps • Guidance launched today • Hard copy provided • Electronic version will be up loaded onto the Banks website • Welcome comments and thoughts for future development • Results will be monitored • Further updated version(s) to be issued based on feedback and results

10. Questions