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Local Procurement of health products

Procurement of health products is associated with very specific and unique risks. This includes, amongst many others, the risks around the quality of the health products that can pose an immediate risk to human life, and the risk of sub-standard health outcomes.

To mitigate these risks, UNDP’s OPG determined that the quality assurance review process for all health procurement should be centrally processed by the Global Health Supply Center (GHSC) regardless of the funding source, and that all local procurement of health products is fully subject to corporate risk management procedures [1].

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 centrally processed by the Global Health Supply Center (GHSC).

In “special circumstances”, UNDP COs that procure health products financed through the Global Fund may submit a request, supported by a detailed justification, to the UNDP GFPHST Senior Health PSM Advisor for authorization to source the health products locally. UNDP GFPHST will review such requests and, based on detailed risk assessment, may authorize local procurement. Such authorizations would be 1) exceptional, 2) for the specific list of health products and quantities, and 3) timebound. Any authorised local procurement must adhere to UNDP’s procurement procedures and UNDP’s QA policy for health products.

COs that implement procurement of health products using funds outside of Global Fund grants are strongly encouraged to use the GHSC to mitigate against the risks that are unique to procuring health products and to ensure full compliance with the UNDP QA Policy. COs that choose to manage procurement of health products outside of the GHSC, 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), and must still engage the services of the GHSC QAS 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 Supply Center (GHSC) while taking into account the relevant project aspect.

As mentioned in the Risk Management section of this manual “Non-compliance with the UNDP procurement rules and regulations and quality assurance policy requirements could create substantial liabilities for UNDP, which are highlighted in the Potential Liabilities Related to Health Procurement document here.”

[1] OPG Decisions, 19 November 2017.

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