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Developing NBA contract management framework and approach for commercial blood product contracts. NBA commercial contracts. Four groups of commercial contracts (14 contracts in total): CAFA Imported Plasma and Recombinant Products (IPRP) Imported IVIg Red Cell Diagnostic Products (RCDP)
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Developing NBA contract management framework and approach for commercial blood product contracts
NBA commercial contracts • Four groups of commercial contracts (14 contracts in total): • CAFA • Imported Plasma and Recombinant Products (IPRP) • Imported IVIg • Red Cell Diagnostic Products (RCDP) • Total annual value $485m in 2011-12
Prompts for improvement • ANAO performance audit and internal audits (GORV, IDMS) • Plasma and recombinant products ‘Supply Chain Improvement Program’ (outcome of the Distribution Review) endorsed by JBC • part 1 - develop a clear position on information requirements and performance standards for supply chain • part 2 - improving the supply chain to the required information and performance standards • part 3 - consolidation of supply chain for clotting factors • NBA contract reviews of current contracts prior to tenders • NBA pre-tender stakeholder consultations • Increasing systems / data strategy emphasis • broadening information in NBA annual report • formalisation of IDMS data file requirements plus non-IDMS data and reports • development of BloodNet and redevelopment of ABDR • development of sector scorecard
Improvements in contracts In addition to benefits of current contracts: • Home delivery standardised against AHCDO/AHNG guidelines • Tightened performance requirements (delivery times, DIFOT, minimum shelf-life, reserve holding) and improved reporting (including home delivery supply, standing inventory arrangements, post-marketing information) • Additional supply security through 3 months ‘committed global stock’ • Improved definition of requirements for product support, and better delineation of role of supplier vis a vis clinicians and patients • Specific requirements for customer feedback framework • Commitment to supply chain and environmental sustainability initiatives • Requirements to provide additional needles, pooling vials, etc clarified • Specific requirements in the case of a product recall • Removal of price confidentiality restrictions
Commercial contract management – approach • Generally adopting a managed business process approach • Managed suite of documentation: • Contract and variations • NBA business system documents – NBA internal policy, process and templates, eg • meeting and management timetable • internal monthly reporting framework against supply, contract and contract management KPIs • policy for calculating and applying contract KPIs • accountability framework, including updated auditing processes • Protocols – issued under the contracts • Supplier reporting templates - issued under the contracts • Scheduled, routine cycles of business • A ‘no surprises’ approach of open dialogue
Contract management – development Phase 1: Using the IPRP contracts to work through and design the full contract management framework, with supplier reports/data and key protocols initial focus. Phase 2: Test the range of outputs from Phase 1 through consultations internally and with suppliers. Refine as necessary and initially implement all reporting and systems elements Target: End June 2012 Phase 3: Progressively transfer elements from phases 1 and 2 as may be applicable for imported IVIg, RCDP and CAFA contracts. Target: December 2012
Contract Management – Development Approach Phase 4: Consolidate the elements that are consistent across all commercial contracts as “NBA Contract Management” standards, specifications and procedures. Target: December 2012 Phase 5: Continue development and implementation of unique contract management elements – finalising the contract management framework – apply continuous improvement. ongoing.
Contract Management – Phase 1 • Protocols: • Customer feedback • Urgent orders • Home delivery • Supplier reports: • Notifiable events • Notices • Monthly invoicing • Stock movement • Stock count • Billing • Reconciliation macro • In Country Reserve • Committed Global Stock • Orders and delivery • Performance • Report certification • Service and quality