Health Procurement Architecture

UNDP COs are strongly recommended to procure all health products through the Health Procurement Architecture defined by UNDP GHPC. This architecture ensures procurement of health products that are compliant with the overall UNDP QA policy.

All procurement of health products that is financed through the Global Fund, where UNDP is either the PR or has signed a Financing Agreement (FA) with another PR, must be implemented via the Health Procurement Architecture defined by UNDP GHPC.

To ensure full compliance with UNDP’s QA Policy and to mitigate against of risks which are unique to health product procurement, UNDP COs that implement procurement of health products using funds outside of Global Fund grants, are strongly recommended to procure all health products through the UNDP GHPC. COs that implement procurement of health products outside of the UNDP GHPC must develop a procurement sourcing and risk management strategy in consultation and agreement with the relevant Regional Bureau, BPPS (HHG/GFPHST), and BMS (health procurement team) [1]. The strategy should determine how the best value for money and lowest risk is achieved using either CO-led procurement or the specialized services of the BPPS/BMS Global Health Procurement Center (GHPC) while taking into account the relevant project aspect. Furthermore, the strategy should agree on a GMS cost sharing arrangement, as applicable.

All LTAs for health products that have been established centrally by the GHPC are closed and are only available for use by the GHPC HPS team.

UNDP GHPC’s Health Procurement Architecture comprises several partnership and sourcing agreements with other UN Agencies, and with manufacturers and other commercial entities. This is described in subsequent sections of this HPM Manual. For each defined product category, a standard sourcing mechanism has been established.

When procurement actions are channelled through UNDP’s Health Procurement Architecture, Country Offices do not need to launch separate tender exercises for price comparison purposes or to obtain further internal approvals (Contract, Asset and Procurement (CAP) and/or Advisory Committee on Procurement (ACP) approval and QA approval). These processes have already been completed with respective organizations/units as part of the establishment of the long-term agreements (LTAs) that comprise the central procurement architecture, in accordance with internal United Nations procurement rules and regulations.

Practice Pointer

To identify the channel to use for sourcing health products, please refer to the Decision Tree of Health Procurement Architecture. If you are unable to find the product category under the Health Procurement Architecture, please contact the GHPC Health Procurement Services Team, based in UNDP, Copenhagen.

It is important, however, for requesting units to observe the standard operating procedures (SOPs) developed by the UNDP HPS team for each of the sourcing options, and to consult with UNDP HPS focal points should any questions arise.

Furthermore, regular analysis of health procurement by Country Offices and the HPS Team serves as a basis for further development of the UNDP health procurement architecture (e.g., the establishment of new global LTAs based on the growing needs in countries). This is particularly important for products that UNDP supports countries to procure outside of the Global Fund portfolio, such as medicines for non-communicable diseases (NCDs). This will be done through a regular review of the product categories being supplied to countries.

UNDP developed a Guidance Note for UNDP Country Offices providing Health Procurement Services to governments, which is available here. The centralized procurement arrangements and services available to UNDP Country Offices promote affordable costs and value for money.

[1] OPG Decisions, 19 November 2017

Additional guidance to support this area of work are also available through resources listed below:

• Health Procurement Architecture