10
Strategy for Pooled Procurement of Essential Medicines and
Health Commodities, 2013-2017
ensuring that all citizens have equitable access to affordable, safe and effective essential medicines.
In such a context the rationale for the pooled procurement of essential medicines and health commodities is there. This
will be implemented in a phased approach, beginning with information and work sharing, and progressively moving
towards group contracting, as PSM systems across Member States reach the required minimum standards of good
practice.
3.1
Understandings and models of pooled procurement
Pooled procurement is the overarching term used where part or all of the procurement processes of different procurement
entities (agencies or departments of bigger entities) are jointly executed by either one of those procurement entities or a
third party procurement entity.
Successful procurement depends on technical capacity, financial resources, good information systems, efficient
management and availability of suppliers. Effective policies, legislation, regulations and guidelines underpin the processes.
Strong political will and economic commitment are needed to support pooled procurement.
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MODEL
DESCRIPTION
Informed buying
Member States share information about prices and suppliers, but
undertake individual procurement.
Coordinated informed buying
Member States undertake joint market research, share supplier
performance information and monitor prices. Countries undertake
individual procurement.
Group contracting
Member States jointly negotiate prices and select suppliers. Countries
agree to purchase, individually, from selected suppliers.
Central contracting and purchasing
Member States jointly conduct tenders and awards contracts through
an organisation acting on their behalf. A central buying unit manages the
purchase on behalf of countries.
Source: Adapted from MSH, 2012.
3.2
Pooled procurement for SADC
The recommended option for pooled procurement of essential medicines for SADC is the group-contracting model,
delivered incrementally through a staged approach that starts with coordinated information exchange and work sharing.
This strategy allows for all Member States to reach minimum standards of acceptable PSM systems, while allowing those
Member States that have attained higher PSM standards to move towards more rapidly adopting group contracting.
The staged approach is in accordance with the principles of regional integration, as espoused by the RISDP. Implementation
will follow progressive stages and build upon them. The expected results of this approach, together with implementation
timeframes and responsibilities, are shown in Table 2.