Sourcing & Management of Health Products

Pooled Procurement Mechanism

The Pooled Procurement Mechanism is a strategic initiative that aggregates order volumes on behalf of participating grants in order to negotiate best prices and delivery conditions with manufacturers for Principal Recipients. In 2015, it managed US$1.25 billion in orders. The Pooled Procurement Mechanism:

  • Gives access to the most competitive prices on the market and deliveries to grant recipients including low-volume implementers;
  • Eliminates procurement delays due to grant disbursement
  • Simplifies grant cash flows;
  • Provides greater demand visibility
  • Enables smoother production planning for suppliers;
  • Enables the use of a stockpile of critical medicines to quickly respond to stock-outs and emergency orders
  • Ensures compliance to the Global Fund procurement and Quality Assurance Policies

The Pooled Procurement Mechanism is one of the Global Fund’s main tools to implement the Market Shaping Strategy and associated health product sourcing strategies. This mechanism has resulted in commercial and non-commercial benefits including significant cost savings, and on-time delivery of goods has increased from 48% to over 80%.

The mechanism serves 150 grant recipients in 60 countries. Implementers can order the following core health products through the Pooled Procurement Mechanism:

  • Antiretrovirals (ARVs)
  • Arteminisinin-based combination therapies (ACTs)
  • Long-lasting insecticidal nets
  • Rapid diagnostic tests (for HIV and malaria)
  • Viral Load and Early Infant Diagnostics

Individual implementers can also obtain a broader range of non-core health products (such as laboratory and diagnostic products, drugs for opportunistic infections, condoms, etc.) through this mechanism. Principal Recipients can request to join at any time by contacting .

The Pooled Procurement Mechanism is managed by the Global Fund. Two procurement services agents selected through a competitive process support the mechanism to execute orders. platform manages the transactions for the orders.