Procurement Empowered Procurement Wing (EPW) Ministry of Health& Family Welfare Government of India 12th July, 2007

Importance of Procurement Efficiency “Of government projects that fail, more than 50 per cent of those failures are ensured during the procurement process and leadership need to recognize they can and must do something about the problem.” ---------- John Kost (Gartner Research, Managing vice president)

Procurement Issues Effective implementation of Programme/Scheme depends on timely procurement of Goods and Services e.g Drugs and Equipments Due to certain procedural problems funds were released to the States for procurement at the fag end of the last two financial years Funds given to states for procurement – many states not able to utilize in time To increase absorptive capacity of funds by states it is essential to strengthen procurement capacity at state level

Background The World Bank and MoHFW noted certain weaknesses in the procurement processes adopted in the past No uniformity in the bidding and evaluation process among multiple procuring agencies Transparency (?) Lack of capacity in many states

Empowered Procurement Wing (EPW) To procure the right quantity and right quality of goods at right time in right place at right price.

Empowered Procurement Wing (EPW) Objectives Provide single window support in achieving efficiency, economy and transparency in health sector procurement of the Central and State Governments EPW procurement process to act as a model for all states EPW would help in capacity building of the states and increase their absorptive capacity of funds

Key Action Points Introduce standardization in practices and documentation e.g. Tender Transparency Act Develop generic standards - specifications Develop databases for procurement, supplier performance, GMP certification, accredited labs, specifications etc. Build procurement capacities of States, Program Divisions and MSO Develop sound logistics of supply and distribution Address quality management issues

Initiatives Equipment specifications (600) posted on MOHFW website Subscription for Healthcare Product Comparison System (HPCS) obtained Information on firms with WHO GMP certificate posted on website (www.cdsco.nic.in)

Initiatives (contd.) Procurement Manual prepared and under finalization IT Strategy approved and PMIS software development activities are being started and expected to be completed by year end Work on development of fraud detection software started – data collection formats finalized Agreement with UNOPS (United Nations Office for Project Services) for procurement of Drugs etc. for World Bank / Donor funded projects

Next Steps… States should MoHFW would organise a three day workshop on Procurement at Chennai in Aug’ 07 States should Standardise and streamline procurement process Placement of trained personnel Development of standard documents and specifications Establishment of transparent procurement system e.g. TNMSC model Complete all pending procurement at the earliest

Thanks OPEN FOR DISCUSSION