Empowered Procurement Wing - Consultants Ministry of Health and Family Welfare

1. Empowered Procurement Wing - Consultants(Ministry of Health and Family Welfare)

2. Objectives to improve the transparency and efficiency of the health sector procurement in the MoHFW and assist the procurement strengthening processes at the State level. support actions required to further enhance the capacities of the EPW of MoHFW assist GoI in the establishment of a new autonomous Central Procurement Agency (CPA), provide targeted procurement capacity building assistance to between 6-10 States,

3. Programme Aims Establishment of a modern, innovative, integrated and cost effective procurement & logistics supply chain system with set key performance measures and indicators Influencing service priorities in-line with best practice thus promoting transparency, equity and the achievement of health gain in the population Working towards long-term financial, technical and administrative sustainability

4. Dependencies Success will be dependent on: efficient procurement and expertise in the Health Sector, effective communication and change management strategies, stakeholder buy-in and capacity building within MoHFW and CPA, effective implementation of management and information systems, planning and application of complex logistics and transport systems, and robust quality assurance and controls.

7. Milestones- To-Date Production of a procurement manual, with standard bidding documents and templates A database/compendium of generic technical specifications for medical equipment (1000 items of capital equipment).  A catalogue of generic vaccine specifications has been completed Preparation of drug specifications, packaging, model inserts, and quality assurance requirements. This has been completed for Kits A & B (RCH II programme). CPADS, an IT based procurement and inventory management tool has been developed for use within the EPW. This functionality has since been incorporated into ProMIS. Logistics Improvement Strategic Plan(LISP)

8. Milestones- to date (Contd)… A review of laboratories controlled by the Central Drug Control Standards Organisation, resulting in the creation of a list of “Approved” testing laboratories Procurement and logistics training at central and state level (personnel from six states trained to-date) The ECRI database applications for preparing equipment specifications has been purchased by the MoH&FW and is being utilised for the development of equipment specifications and product coding. Strategic Business Plan and Vision Document- Formulation of CPA. At central level ongoing technical support is being provided in supporting the formation of the CPA, a major development initiative by the MoHFW Technical and Human Resource support to PMSSY Oversight on Inspection and Testing of vaccines, devices and drugs at manufacturing source

9. ProMIS - Where are we now ? Development of ProMIS for use at both central and state levels, focusing on the key components of procurement management, forecasting and quantification, complete procurement cycle, distribution and management. Software Requirement Specifications signed off- May 2008 Prototype approval- December 17, 2008 Trainings – Jan-March 2009 (nearly 200 users trained) Onsite Support – April 2009 – till date User Acceptance – 31 July 2009 Final Sign Off- 16 September 2009 Development of anti-corruption applications for inclusion into ProMIS NIC Security Audit completed. User Manual is now well underway

10. Service Levels Comparison with E-Governance Procurement

11. Service Levels Comparison with E-Governance Procurement

12. ProMIS and HMIS Integration HMIS is an Statistical tool, where paper filled forms from surveys are entered in HMIS to get results. ProMIS is transaction based system HMIS is capturing data till the facility level. ProMIS coverage is till district level. HMIS coverage is financial, stocks, beneficiary based data. ProMIS is a pure logistics, inventory & procurement management tool. HMIS users are M&E officers. ProMIS users primarily constitute the store keepers & pharmacists. HMIS plans to map the locations of facilities & warehouses that will be picked up by ProMIS too to show the transfer of stocks from various locations. Once ProMIS is implemented all over country, the stock module in HMIS will be removed and the reports will be generated from transactional system.

13. Implementation Approaches The provision of robust recommendations on improving infrastructure: physical, human resources and communications Improving the quality of data: ProMIS, MIS People reached with services Impact on health/disease: Maternal and Child mortality reduced with access to quality medicines Managing for results and sustainability The right people providing the right information in the right place at the right time

15. Tangible Outputs Formation of the CPA: Strategic Business Plan, Procurement, Logistics & Supply Chain Systems, Information Systems, Human Resources, Service Driven and Accountable State-wide application of the Procurement Capacity Assessment Tool in Ten States: Results driven with proven indicators of sustainability IT Policy: ProMIS expansion, capacity building and training Training on Needs Assessment and Quantification: Reduce overstocking, wastage and working towards an efficient supply chain based on a “Pull” rather than “Push” system that benefits all programmes where procurement is a key component with the premise of “No Product? – No Programme” (JSI DELIVER)

16. Tangible Outputs: Building Communications as a strategy: Development of a big-picture communications strategic goal Defining clear flexible objectives for functional areas which may change over time Using critical tactics to be where we want to be within given time-frames (provides feedback and assists in programme evaluation) Incorporate an appropriate feedback loop by measuring results versus objectives and tactics; make appropriate adjustments; and improve Understand the communication channels chosen, with limitations, the desired levels of interaction and feedback needs Applying the appropriate packaging techniques for understanding the end-user, and to disseminate and reinforce corporate or local culture In all circumstances avoid pandering to the “Lowest Common Denominator”, strive for excellence

17. Proposal of MoHFW to set-up a Central Procurement Agency (CPA) An autonomous government agency (a government company) Full functional and financial autonomy Responsible and accountable for procurement and distribution (Supply Chain Management) Lean with state-of-the-art technology Professionally managed

18. CPA Responsibilities Procurement of health sector goods for GOI in a transparent and efficient manner Supply Chain Management Ensuring timely availability of goods to the State Governments without stock-outs and eliminating budgetary constraints Systems standardisation, quality control, timely payment to vendors Addressing the concerns of users and vendors effectively

19. Thank you