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

2. 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)

3. 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

4. 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

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

6. 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

7. 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

8. 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 (

9. 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

10. 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

11. Thanks
OPEN FOR DISCUSSION