Procurement Support Services

With over US$ 18.7 billion committed for more than 572 programs in 140 countries the Global Fund has become the main source of financing in the fight against AIDS, tuberculosis and malaria. Over 40% of these funds are committed to the procurement and management of pharmaceuticals and other health products. The Procurement and Supply Management (PSM) activities are also identified as key challenges during grant implementation, thus negatively impacting grant performance and access to medicines and health products.

The Procurement Support Services was established in response to a Board Decision to provide Voluntary Pooled Procurement (VPP) and Capacity Building Services/ Supply Chain Management Assistance (CBS/SCMA) to its grant recipients.  The Procurement Support Service, which is a coordinated approach to provide support to countries to resolve procurement bottlenecks and supply chain management challenges and facilitate the timely access to pharmaceuticals and health products, is available to all countries receiving Global Fund grants.

Voluntary Pooled Procurement (VPP)

The VPP is the short-term strategy aimed at ensuring a cost effective and efficient procurement of core health commodities. Through this pooled procurement mechanism the procurement process is simplified with the main focus to:

• Reduce timelines for ordering and deliveries
• Ensure compliance with the procurement policy of competition and transparency
• Ensure compliance to Global Fund Quality Assurance policy
• Facilitate timely deliveries and payment
• Meet the needs and requirements of Principal Recipients

Capacity Building Services / Supply Chain Management Assistance (CBS/SCMA)

The CBS/SCMA is the long term strategy, providing services for strengthening in-country procurement and supply management systems to PRs. Through the CBS/SCMA, the challenges in supply chain management are addressed:

• Through the provision of Technical Support
• To strengthen existing capacities / systems
• With the main focus on Quantification, Storage, Distribution, Logistics Management Information System (LMIS) and Quality Assurance activities 
• And In collaboration with in-country development partners

Participation in VPP and/or CBS/SCMA is voluntary, with the Global Fund Secretariat facilitating and coordinating the provision of these services through an opt-in process for PRs. The operational activities of the VPP and CBS/SCMA are outsourced to Procurement Services Agents (PSA) and Technical Assistance (TA) service providers respectively. All payments for the VPP and CBS/SCMA services will be made from the PRs’ grants through the direct payment mechanism (funds will be disbursed directly from the Global Fund Trustee account to the procurement agent or technical assistance provider).

The VPP and CBS/CSMA was launched in June 2009, and both services are operational.

By December 2009:

• 30 countries representing various regions have already confirmed their participation to VPP
• Over US$ 200 million had already been disbursed for the procurement of pharmaceuticals and other health products. This includes the purchase of over 40 million nets, ACTs, ARVs, as well as drugs for opportunistic infections, laboratory equipment and supplies etc.
• CBS/SCMA activities are currently ongoing in 2 countries, whilst consultations are underway in about six countries

Contact Information:

For questions related to VPP and/or CBS/SCMA, please contact the Procurement Support Services Team: