Established as a partnership in global health, the Global Fund works closely with a wide diversity of partners –implementing governments, donors, civil society, international development organizations, the private sector and communities living with and affected by the diseases. This partnership model actively supports country-owned approaches that develop and implement effective, evidence-based programs to respond to AIDS, tuberculosis and malaria.
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A Disease with No Respect for Borders
With over US$ 19.9 billion committed for more than 785 programs in 144 countries (November 2010), 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 the decision made by the Board 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 Global Fund grants.
The VPP is a short-term strategy aimed at ensuring a cost effective and efficient procurement of core health commodities. The Voluntary Pooled Procurement aims to address key procurement-related bottlenecks by:
Through the VPP, Principal Recipients (PRs) can procure the following types of core health products:
PRs may also procure exceptionally, the following non-core products through the VPP although this is not the main function of the VPP:
The procurement of these non-core products is offered to support the PR during grant implementation and to meet the specific needs of PRs. However, due to the diversity of products within this group, the high number of different specifications, the low volume of some products that are sometimes difficult to source, PRs should not expect quotations and delivery lead times as well as pricing to be as attractive as for core products. The Procurement Services Support (PSS) Team will therefore provide advice to PRs on the feasibility of procuring these non-core products on a case-by-case basis.
PRs intending to take advantage of benefits of VPP or PRs that are required to use a procurement agent (including VPP) can register for participation at any time. To assist in the decision to employ such services, PRs are requested to read the information here [ PDF - 194 KBEnglishEspañolFrançais ].
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 and in collaboration with in-country development partners. The main focus areas of CBS/SCMA is Quantification, Storage, Distribution, Logistics Management Information System (LMIS) and Quality Assurance activities,
Participation in VPP and/or CBS/SCMA is mainly 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 Support (TS) service providers selected through competitive processes. All payments for the VPP and CBS/SCMA services will be made from the PRs’ grants through the direct payment mechanism (i.e. funds will be disbursed directly from the Global Fund Trustee account to the procurement service agent or technical support provider).
The Procurement Support Service became operational in June 2009, and by 1st September 2010, 74 grants (from 40 countries) have placed orders with VPP which translates to over US$500 million of health products. CBS/SCMA activities are currently ongoing in four countries, whilst consultations are underway in about ten countries. 2009-10 Progress report [ PDF - 236 KBEnglish ].
For questions related to VPP and/or CBS/SCMA, please contact the Procurement Support Services Team:
PSM Procurement and Supply Management
P4i Procurement for Impact
Private Sector Co-payment Mechanism
PDF - 51 KB
VPP Key Results Report 2009-2011
PDF - 120 KB
Frequently Asked Questions
Also available in:Español | Français
PDF - 103 KB
Capacity Building Service Process
PDF - 194 KB
Voluntary Pooled Procurement Process
PDF - 236 KB
2009-10 Progress report
PDF - 215 KB
VPP Procurement Service Agent Fee structure
Board Decision: Market Dynamics & VPP (Apr 07)
PDF - 53 KB
Board Decision: Value for Money & Market Shaping (May 11)
PDF - 805 KB
MDC report including Market Shaping Strategy (May 11)
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