UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...

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UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Safe Injection Equipment
                                              Industry Briefing Webinar
                                              RFP-DAN-2019-502979
                                              3rd June 2019

UNICEF Procurement Strategy for Safe
Injection Equipment Tender for 2020-2021
RFP-DAN-2019-502979
Rob Matthews, Health Technology Centre, UNICEF Supply Division
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Safe Injection Equipment
                Industry Briefing Webinar
                RFP-DAN-2019-502979
                3rd June 2019

Welcome and Introduction
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Welcome and Introduction

• Webinar Modality

• Questions and Answers
   • We will disable the voice from other participants not to disrupt the presentation
   • You have the opportunities for writing questions during the presentation which
     we will endeavor to answer at the end.

• The presentation from this webinar will be available at
  https://www.unicef.org/supply/index_103574.html

• Presentations from the previous tender round, providing insight into
  the planned approach are available at
  https://www.unicef.org/supply/index_94621.html
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Introduction to Safe Injection Equipment Tender Industry Briefing
Webinar

Changed approach from the previous Industry Consultations due to:

• Limited change in the Strategic Approach from the prior tender round

• More sustainable, avoiding travel air travel for +/- 60 participants

• 2/3 of responders from the industry survey issued in February were in
  favour of a Webinar

• More efficient process
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Webinar Overview

• Assessment of prior SIE Tender round outcome and 2018 Year end review against the
  strategic objectives and identified risks
• Landscape changes and Impact on procurement Approach
• Procurement Strategy
• Tender Scope
• Tender Objectives and Targets
• Forecast Quantities
• Tender Document Structure
• Response Templates
• Evaluation Criteria and Approach
• Planned Tender Timelines
• Reference Material
• Communication
• Q&A
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Safe Injection Equipment
                     Industry Briefing Webinar
                     RFP-DAN-2019-502979
                     3rd June 2019

RFP-DAN-2017-502431 Tender Strategy
       Assessment Outcome
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
Assessment of the 2018-2019 Tender Strategy

• When developing the Procurement Strategy for SIE for 2018-2019,
  assessment metrics were identified to assess the effectiveness of the
  approach and identified risks.

• An assessment of the recommended awards was undertaken at the time of
  CRC submission and at the end of 2018 to provide a mid-term assessment
  of the strategy developed for the 2018-2019 SIE Tender to inform the
  strategy going forward.

• 8 Objectives and 2 Targets were set for the 2018-2019 Tender
UNICEF Procurement Strategy for Safe Injection Equipment Tender for 2020-2021 - RFP-DAN-2019-502979 - Safe Injection Equipment Industry Briefing ...
2018-2019 Tender Objectives
1. Ensure an uninterrupted, sustainable supply of affordable products that are in compliance with the
   required quality and technical requirements. This is the overarching objective.
2. Strengthen injection safety by (i) reducing the risk of re-use, through a tender strategy that
   supports a preference for devices that have an activation of the auto-disabling feature
   commencing prior to delivery of the fixed full dose.
3. Maintain a healthy market with multiple suppliers in the markets where this has been achieved and
   further improve the healthy market status where this is required, seeking further reductions in the
   weighted average price (WAP).
4. Engage Industry to address programmatic and supply challenges, including new immunization
   strategies, reducing lead times and increased bundling of SIE offered products and resultant
   shipments.
5. Reduce the overall cost to programs through the continued application of a landed cost evaluation
   criteria to better assess the full cost to programs.
6. Implementing a more sustainable procurement approach encouraging product innovations that
   reduce the overall carbon footprint and waste disposal requirement.
7. Support Bundling of vaccines and injection devices and that the delivery of such is done in an
   efficient manner.
8. Improve the efficiency of the tendering, procurement and delivery processes.
2018-2019 Tender Targets

Two Supply Outcome Targets were set to be achieved by 2021.

Sustainability Target (under Objective 6)
• To develop local industry, we included a target of 20% of awards
  made to new local manufacturers by 2021, to (i) stimulate local
  production facilities to reach the required quality standards and (ii) to
  grow local production.

Delivery Efficiency (under Objective 7)
• To improve delivery efficiency through bundling awards for AD
  syringes, Safety Boxes and Reconstitution Syringes with the same
  proposer, a target of 80% of awards be bundled by 2021.
Objective                         Assessment Metrics         Evaluation of Award at CRC Submission          Mid Term Strategy Review End 2018

1. To ensure an uninterrupted, sustainable No supply interruptions, All    All recommended awards are compliant        No supply interruptions occurred and
supply of affordable products that are in awarded products met the         with required quality and technical         improved market health for the two previously
compliance with the required quality and required technical standards      requirements. Improved market for items     constrained markets.
technical requirements. This is the                                        20 & 30 0,05ml and 0,1ml AD Syringes.
overarching objective.

2. To strengthen injection safety by (i)   All awards made for devices     All awards of AD syringes made with        All awards for AD’s made with early activation
reducing the risk of re-use, through a     having an activation of the     disabling mechanism at onset of injection. of the disabling device.
tender strategy that supports a preference disabling feature prior to
for devices that have an activation of the delivery of the full dose where
auto-disabling feature commencing prior there is available supply of these
to delivery of the fixed full dose;        products.

3. Maintain a healthy market with            Multiple suppliers awarded,   Market health improved with more              Actual WAP for AD’s declined by 1.7%, market
multiple suppliers in the markets where reduced WAP; Awards made           suppliers for AD’s, particular items 20 & 30. health improved for the 0,05ml and 0,1ml AD
this has been achieved and further           using a landed cost price     WAP increased by 0,5% but sustainability syringes (Items 20 & 30)
improve the healthy market status where evaluation                         gains achieved.
this is required, seeking further reductions
in the weighted average price (WAP).

4. Engage Industry to address              Improved outcomes over prior    62% bundled awards for AD’s and Safety      Bundled awards have enabled the reduction of
programmatic and supply challenges,        tender rounds; Number of        Boxes.                                      shipments by 11% in 2018 from 2017 figures
including reducing lead times and          alternative offers received                                                 with an associated increase in item requests
increased bundling of SIE offered products                                                                             by 7%
and resultant shipments.
Market development and applied procurement approach

• In 2013, HTC revised the tender
  approach for Safe Injection Equipment,
  merging four separate ITBs for AD
  syringes, RUPs, Safety Boxes and
  Disposable syringes and needles into
  one RFP covering all SIE related
  commodities for the 2014-2015
  demand.

• In the following tender issued in 2015,
  covering 2016 and 2017 demand, 40%
  of awards were made for bundled
  supply – awarding the same supplier
  with the full range of SIE products
  allowing for bundled supply.

• In 2017, targets were set for awarding
  80% of demand as bundled product by
  2021; 62% of awards were bundled for
  the 2018-2019 award period.
Objective                          Assessment Metrics              Evaluation of Award at CRC Submission           Mid Term Strategy Review End 2018

5. Reduce the overall cost to programs        Awards made using landed cost        Awards based on landed cost evaluation.      Actual overall WAP across the entire range
through the continued application of a        evaluation criteria.                 Increased WAP of 1.1% however anticipate     of SIE products has remained constant
landed cost evaluation criteria to better     Decline in the volume of waste       a reduction in number of shipments and       between 2017 and 2018 based on the
assess the full cost to programs.             based on awards made                 associated delivery and handling costs.      specific order profiling.
6. Move towards a more sustainable            Awards made factoring in             Tender activity and Award                    7% reduction in waste achieved in
procurement approach encouraging              sustainability criteria in           recommendations resulting in anticipated     comparative actuals from 2017 to 2018. It is
product innovations that reduce the           Evaluations.                         12% reduction in waste generated;            anticipated that the waste reduction will
overall carbon footprint and waste            Reduction in the unit weight and     6% reduction in transport volumes;           increased in the remainder of the award
disposal requirement.                         volume of awards made from           5% of value award to new local producer.     period.
                                              prior rounds.                        Electronic tendering process reduced paper
                                                                                   wastage and increased process efficiency.   4% of quantities shipped from new local
                                                                                                                               suppliers in 2018
7. Support Bundling of vaccines and           Range of product award by            62% bundled awards for AD’s and Safety      Bundled awards have enabled the reduction
injection devices. The Bundling Principle     supplier                             Boxes on track for 2021 target.             of shipments by 11% in 2018 from 2017
denotes that for each vaccine dose                                                 Anticipate further reductions in shipments. figures with an associated increase in items
delivered, there are a sufficient number of   Improve Delivery performance         Will monitor during LTA implementation      requested by 7% and volumes increased by
AD syringes, reconstitution syringes                                               period.                                     3%.
(where applicable) and safety boxes and
that the delivery of such is done in an
efficient manner.
8. Improve the efficiency of the tendering,   TAD performance, Proportionate       62% bundled awards and award approach        Bundled awards have enabled the reduction
procurement and delivery processes.           Reduction in overall Freight costs   positions UNICEF for a more efficient        of POs and shipments by 10% and 11%
                                              Proportionate number of              procurement and delivery process.            respectively with an associated increase in
                                              shipments and transactions vs SO     Electronic bid process and automated data    item requests by 7%.
                                              requests in comparison to 2015       extraction reduced the overall evaluation
                                              baseline.                            by approximately 50%.
Delivery efficiency gains

• The benefits of the bundled award strategy are
  shown in the Table and Graph on the right, with the
  decreasing number of shipments made and POs
  issued, in comparison to the increased quantity of
  goods shipped.

• The number of shipments made has been declining
  since 2015, with 2018 reporting a reduction in
  shipments of 11% when the number of items
  requested increased by 7% and quantities by 3%.
  This trend supports the continuation of the bundling
  approach, validating the 2021 target of bundling
  80% of awards.

• In addition to the bundled delivery approach, a
  revision to the GAVI decision letter structure
  consolidating all GAVI related device approvals of
  routine programs to one approval per country,
  introduced in 2017, reduced the number of requests
  for SIE significantly (39%).
Assessment of risk at
                                                                                              Assessment of Risk at CRC Mid Term Strategy Review
    Potential Risk             Risk Mitigation strategy        Strategy Development
                                                                                                    Submission                 (end 2018)
                                                                        Stage
Supply interruptions   Multiple suppliers contracted, 10%    Low (due to applied              Low. Improved market for Low. Market status
                       buffer stock requirement. Should      approach); though possibly       items 20 & 30 0,05ml and improved for items 20 &
                       demand outweigh supply for 0.1ml AD problematic for 0.1ml AD           0,1ml AD Syringes.       30).
                       then the wider supply base including syringe demand depending
                       activation of the disabling mechanism on the Polio program plans.
                       at the end of injection will be
                       considered.

Questionable SIE       Quality assurance criteria in place    Low (due to applied             Low. All Recommended      Low. All recommended
quality                                                       approach)                       awards meet UNICEF        products met UNICEF
                                                                                              Quality requirements.     Quality requirements
Increase in the WAP    Increased transparency through           Medium (based on the          The recommended award Actual WAP for items 10-30
for AD syringes        posting of awarded prices, switch from increased focus on              reflects an increase of 0,5% for 2018 reduced by 1.7%
                       ITB to RFP for bidders to leverage their sustainable procurement)      from prior round for items
                       comparative advantage.                                                 10 - 30. The Business unit
                                                                                              considers that the
                                                                                              sustainability gains from
                                                                                              the recommended award
                                                                                              justify the price increase.
                     Opportunity for bidders to include a                                                               Low. No price increase
                                                              Low, considering that the oil
Price premium due to price option pegged to raw material                                                                requests received – noting
                                                              price has ‘bottomed out’           Low. Prices appear
fluctuating raw      markets would increase this risk but                                                               that planned LTA duration of
                                                              and is more likely to              competitive
material prices      reduce the risk buffer placed if no                                                                2 years limits this risk from
                                                              increase than decrease.
                     option was provided.                                                                               a supplier perspective
Assessment of risk at
                                                                                              Assessment of Risk at CRC Mid Term Strategy Review
    Potential Risk             Risk Mitigation strategy             Strategy Development
                                                                                                    Submission                 (end 2018)
                                                                            Stage

Currency Fluctuation    Offers are accepted in US$ and Euro.      Medium (considering the     Low. Only one supplier       Low. Reduced number of
US$: Euro               While there is a risk that the WAP will   current fluctuations seen   contracted in Euros.         awards in Euro. Actual
                        be affected by currency fluctuations,     within the currency         Bundling approach has        spend in Euro dropped from
                        accepting offers in both currencies is    markets.                    reduced the level of Euro 7 to 4% of total spend
                        considered lower than requiring offers                                contracting (unanticipated). reducing exchange rate risk
                        in US $ as bidders would include a
                        premium to cover such risk.
Deterioration of AD     Multiple suppliers contracted,            Low (due to applied         Low. Positive market         Low. Positive market status.
syringe current healthy evaluation approach not only on price     approach)                   development.                 Additional suppliers
market                                                                                                                     contracted for items 20 and
                                                                                                                           30 than previous tender.
WHO exit as a          UNICEF to take over Quality Assurance Low                              Low                          Low. No plan from WHO to
prequalifying body and                                                                                                     remove WHO pre-
its implications for                                                                                                       qualification.
quality assurance
Challenges of timely Buffer stocks established with          Medium                           Low. LTAs require 10%        Low. Improved supplier
outbreak response vs. suppliers; Geographically diverse                                       buffer stock for emergency   base for 0,1ml reduced the
long lead time due to supplier base; Industry engagement in                                   response. Improved supply    risk of low responses.
sea shipment transit addressing this issue                                                    base for items 20 & 30       Increased overall demand
time                                                                                          0,05ml and 0,1ml AD          levels for 0,1ml due to IPV
                                                                                              Syringes for fractional      fractional doses has
                                                                                              doses.                       increased supplier
                                                                                                                           confidence in this market.
Assessment of risk at
                                                                                      Assessment of Risk at      Mid Term Strategy Review (end
    Potential Risk          Risk Mitigation strategy         Strategy Development
                                                                                        CRC Submission                       2018)
                                                                     Stage

Negative Industry      Option for industry to respond as Low, do not anticipate a     Low. Very positive      Low. Industry has reacted positively
response to the        in prior rounds                   negative response from       approach from           to this approach with an increase in
proposed approach                                        industry. Prior tender round Industry.               the number of suppliers offering
                                                         using a similar approach                             technically acceptable bundled offers
                                                         produced positive results.                           and another AD syringe supplier has
                                                                                                              just obtained WHO pre-qualification
                                                                                                              for safety boxes, increasing the
                                                                                                              opportunity for bundled offers
Inaccurate forecasts   Close follow up on changes in       Medium. (new vaccine       Low. Proposed awards Low. Forecast accuracy was as
                       demand forecasts; regular           introduction delays and    are based on         predicted, with good forecast
                       participation in key partnership    variations in campaign     conservative         accuracy on the 0,5ml AD syringes
                       calls, keep informed of key partner plans)                     forecasts. Good      and safety boxes; good forecast
                       plans                                                          availability in the  accuracy on the reconstitution
                                                                                      markets              syringes overall but variance between
                                                                                                           the disposable syringes and RUP
                                                                                                           syringes and poor forecast accuracy
                                                                                                           overall for the curative demand. This
                                                                                                           supports the type of LTA used for
                                                                                                           award (Target bound LTAs for AD
                                                                                                           syringes and Safety boxes and Time
                                                                                                           bound LTAs for the remainder of the
                                                                                                           products.
Assessment of risk at
                                                                                         Assessment of Risk at CRC     Mid Term Strategy Review
     Potential Risk            Risk Mitigation strategy        Strategy Development
                                                                                                 Submission                   (end 2018)
                                                                         Stage
Product innovation    Monitor product pipeline, product     Low (Due to contract period Low. New technologies         Low. No scale up on new
making contracted     innovations,                          and pre-qualification and under development but           technologies.
products obsolete                                           field test criteria)        not close to scale up in
                                                                                        markets
Increased focus on    Risk is acknowledged though seeks to Medium                       WAP increase of 1,1%          Low. A 1.7% WAP reduction
sustainable           encourage industry to develop smaller                             under recommended             on actual AD syringe
procurement resulting products and lighter, less bulky                                  award. The Business unit      procurement; a 0,6%
in increased pricing  packaging                                                         considers that the            reduction in WAP on overall
                                                                                        sustainability gains from     AD and SB actual
                                                                                        the recommended award         procurement; and zero
                                                                                        justify the price increase.   variance on all
                                                                                                                      Immunization SIE product
                                                                                                                      actual procurement
                                                                                                                      occurred.
Progress towards the 2 targets set for 2021

20% of the awards to new local producers by 2021
• The awards made under RFP-DAN-2017-502431 (5%) is under the desired
  linear progression. The full award to eligible new local producers was made
  in the 2018-2019 tender round, though there were limited eligible suppliers.

The bundling of 80% of the awards by 2021 to improve delivery efficiency
• The awards made under RFP-DAN-2017-502431 are on track (currently at
  62%) to achieve the 80% bundling in the next tender round (2020-2021).
2018 Forecast Accuracy and applied Award Strategy
• The forecast accuracy for the
  Target bound LTA items is
  considered good, with the only
  deviation outside of the 20%
  accuracy for the 0,1ml AD syringe.
• For the 0,1ml AD Syringe,
  Considering that the overall
  quantities for this product are
  relatively small and the current
  demand is volatile due to unknown
  polio fractional dose response
  strategies, the current outcome is
  considered acceptable.
• The applied award strategy,
  establishing target bound LTAs for
  AD syringes and Safety boxes,
  and Time bound LTAs for the
  remainder of syringes and
  needles proved to be a successful
  approach in supporting delivery
  efficiency and is recommended to
  be maintained during the next
  ender round.
Summary Assessment of the 2018-2019 Procurement Strategy

The Procurement strategy developed for the 2018-2019 tender for
SIE, supporting the achievement of the objectives and targets set
for 2021, has proven to be successful in achieving the objectives
set; noting that the linear progression for the local production
target is under target.
Safe Injection Equipment
            Industry Briefing Webinar
            RFP-DAN-2019-502979
            3rd June 2019

Landscape Changes
The New Joint Injection Safety Policy

New joint injection safety policy
• Recommending the sole use of Re
  Use Prevention (RUP) Syringes for
  vaccine reconstitution.
• This will impact the demand for
  2ml and 5ml disposable syringes
  with fixed needles, shifting the
  immunization related disposable
  syringe demand over to 2ml and
  5ml RUP syringes with needles.
Structural changes within UNICEF Supply Division

Merging of the former Medical unit
and SIE units within the Health
Technology Centre (HTC) in 2018
• Having merged the two portfolios of the
  former business units, there are
  efficiency gains to achieve by including
  related products formerly procured
  under separate tenders into this tender
  to leverage off the overall volumes and
  shared supply base.
• These include cannula’s, spinal
  needles, scalp vein needles and three-
  way valves.
• The total value of 2018 procurement of
  these 11 additional products was
  $534,000; in comparison to the SIE
  procurement value of $29,250,000.
Safe Injection Equipment
                     Industry Briefing Webinar
                     RFP-DAN-2019-502979
                     3rd June 2019

2020-2021 SIE Procurement Strategy
Procurement Strategy for SIE for 2020-2021

Considering that:
• that the applied strategy has proven effective based on the mid-term
  review, and
• that targets were set for 2021;
The 2020-2021 objectives will remain the same as the procurement
strategy for the 2018-2019 period.

UNICEF is extending the duration of the existing procurement strategy
(2018-2019) to cover the 2020 -2021 period, with minor adjustments to
address the landscape changes by:
• Not limiting the awards for RUP syringes to those suppliers receiving
  awards for AD Syringes alone (the LTAs will remain timebound);
   • To facilitate this market shift and ensure supply security, awards for RUP syringes will
     not be limited to those suppliers receiving awards for AD Syringes alone as per the
     current tender period but will allow for flexibility in the award of RUPs to ensure
     adequate coverage and supply security.
• Inclusion of 11 additional products covering cannula’s, spinal needles,
  scalp vein needles and three way valves.
Safe Injection Equipment
                 Industry Briefing Webinar
                 RFP-DAN-2019-502979
                 3rd June 2019

2020-2021 SIE Tender Scope
Scope of Products included under this Tender

   The range of products to be included under this procurement strategy
   are Auto-Disable (AD) Syringes, Safety Boxes (SB) and Re-Use
   Prevention (RUP) Syringes Disposable Syringes and Needles, Spinal
   Needles, Scalp-vein Needles, Cannulas and 3-way valves
      • RUP with SIP are excluded from this tender due to single country historic
        demand for the 1ml RUP with SIP through UNICEF and no forecast demand
        for the 1ml, 3ml or 5ml, therefore not justifying the establishment of an LTA
      • Should demand materialize for RUP with SIP during the 2020-2021 period
        separate tenders covering the required demand will be issued.

   • The consolidation of these commodity groups under one tender is
     based upon
      • their interdependent usage in both immunization and curative settings (as
        part of emergency response health kits) to support safe injection and waste
        management;
      • providing the opportunity to make bundled awards across the product range
        enabling delivery and transactional efficiencies;
      • offered product range from industry; and
      • providing efficiency gains through reducing the number of individual tenders
        undertaken.
List of Products included under this Tender
Item # Material Number     Product Description                       Item #   Material Number                Product Description
                            AD Syringes                                                  Disposable hypodermic syringes
10    S0002016             Syringe,A-D,0.5ml,w/ndl/BOX-100           80       S0782110           Syringe,disp,2ml,w/ndl,21G/BOX-100
20    S0002013             Syringe,A-D,BCG,0.05ml,w/ndl/BOX-100      90       S0782111           Syringe,disp,5ml,w/ndl,21G/BOX-100
30    S0002012             Syringe,A-D,BCG,0.1ml,w/ndl/BOX-100       100      S0782112           Syringe,disp,10ml,w/ndl,21G/BOX-100
                         Sharps safety boxes                         140      S0782203           Syringe,disp,1ml,ster/BOX-100
                                                                     150      S0782205           Syringe,disp,2ml,ster/BOX-100
40    S0782208             Safety box f.used syrgs/ndls 5lt/BOX-25
                                                                     160      S0782405           Syringe,disp,5ml,ster/BOX-100
                            RUP Syringes                             170      S0782413           Syringe,disp,10ml,ster/BOX-100
50    S0782316            Syringe,RUP,2ml,w/ndl,bi-pack/BOX-100      180      S0782425           Syringe,disp,20ml,ster/BOX-100
51    S0782321            Syringe,RUP,2ml,w/ndl,fixed,21G/BOX-100                    Cannula, Needles and Three-way valve
60    S0782317            Syringe,RUP,5ml,w/ndl,bi-pack/BOX-100      240      S0709235           Cannula,IV short,16G,ster,disp
61    S0782322            Syringe,RUP,5ml,w/ndl,fixed,21G/BOX-100    250      S0709231           Cannula,IV short,18G,ster,disp
70    S0782318            Syringe,RUP,10ml,w/ndl,bi-pack/BOX-100     260      S0709232           Cannula,IV short,20G,ster,disp
71    S0782323            Syringe,RUP,10ml,w/ndl,fixed,21G/BOX-100   270      S0709233           Cannula,IV short,22G,ster,disp
110   S0782311            Syringe, RUP 2ml w/o ndl                   280      S0709234           Cannula,IV short,24G,ster,disp
120   S0782312            Syringe, RUP 5ml w/o ndl                   290      S0709236           Needle,scalp vein,21G,ster,disp
130   S0782313            Syringe, RUP 10ml w/o ndl                  300      S0709237           Needle,scalp vein,25G,ster,disp
                  Disposable hypodermic needle                       310      S0747996           Needle,spinal,22G(0.7x40mm),ster,disp
190   S0747420            Needle,disp,19G,ster/BOX-100               320      S0709238           Needle,spinal,22G(0.7x90mm),ster,disp
                                                                     330      S0709239           Needle,spinal,20G(0.9x90mm),ster,disp
200   S0747432            Needle,disp,21G,ster/BOX-100
                                                                     340      S0709240           Three-way valve, Luer, w/caps
210   S0747440            Needle,disp,22G,ster/BOX-100
220   S0747452            Needle,disp,23G,ster/BOX-100                             Alternative Offers (including bundled offers)
230   S0747445            Needle,disp,25G,ster/BOX-100               350      U481800            Syringes and safe injection equipment
Safe Injection Equipment
                      Industry Briefing Webinar
                      RFP-DAN-2019-502979
                      3rd June 2019

Historic Procurement volumes of SIE
         products 2013-2018
UNICEF Historic Procurement quantities of SIE products (2013 – 2018)

                                       Within the SIE procurement
                                       volumes undertaken by UNICEF,
                                       the key market within this product
                                       range is the 0.5ml AD Syringe
                                       market in terms of volumes and
                                       value and where UNICEF has an
                                       ability to influence the market
UNICEF Procurement Value across SIE products included under this
  tender (2013 – 2018)

From a value perspective the key commodities to be established under the resultant LTAs are AD
syringes and Safety Boxes amounting to over 90% of the total historic procurement value (2013-2018)
Safe Injection Equipment
                  Industry Briefing Webinar
                  RFP-DAN-2019-502979
                  3rd June 2019

2020-2021 SIE Tender Forecast
         Quantities
Specific Note - 0,1ml AD Syringe demand

• Volatility of demand for the 0.1ml AD         UNICEF 0,1ml AD Syringe demand profile 2013-2018
  syringe.
• Used for intradermal fractional dose
  delivery of IPV (fIPV) and YF vaccines
  where acute vaccine shortages prevailed
  at times of outbreak
• Increased, procurement volumes since
  2016 which are anticipated to continue
  during 2020 and 2021 should the Polio
  Program and countries elect to utilize the
  fractional dose for IPV.
• The 0,1ml AD Syringe market situation
  has improved so it is not anticipated to
  make specific awards for outbreak
  response stockpiling as per previous
  years but rather to source that from
  within LTA awards made for the 2020 –
  2021 period.
• UNICEF requests suppliers offering this
  product to consider carrying a finished
  stock of 5 million syringes to be available
  in case of outbreak.
Resultant planned awards

   1.   Target bound Long Term Arrangements (LTAs) for AD
        syringes and Safety boxes (2 year duration)
   2.   Time bound LTAs covering the immunization demand for
        the associated disposable and RUP syringes used for the
        reconstitution of vaccines (2 year duration)
   3.   Time bound LTAs for the RUPs, Disposable syringes and
        Needles for kit packing and emergency response
        a. based on the low volumes and value and highly variable demand
           levels (driven by Health kit demand). (2 year duration)
   4. Time bound LTAs for the Spinal Needles, Scalp vein sets, 3
      way valves for kit packing and emergency response
        a. based on the low volumes and value and highly variable demand
           levels (driven by Health kit demand). (2 +1+1 year duration)
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Tender Document
Document Structure

4 Sections
1. Instruction to Proposers
2. Specific Terms and Conditions
3. Technical Provisions
4. Evaluation of Proposals and Basis for Awards

7 Annexes
A.      Tender Products and Quantities
B.      Technical Specifications
C.      UNICEF Technical Requirements for Medical Devices (MD)
D.      Technical Proposal Response Template
E.      Commercial Proposal Response Template
F.      Background Information, including the Safe Injection Procurement Strategy
G.      UNICEF General Terms and Conditions

Same format and templates as the prior tender round.
1. Instruction to Proposers

Outlines requirements proposers must meet when submitting their proposals.

Highlights:
• Use the Response Templates provided for the standard requested information fields under
  the relevant section of the Response Templates
• Annex D: Technical Proposal Response Template
• Annex E: Commercial Proposal Response Template
• Additional information to be submitted under in Section 17 of Annex D for technical
  information or Section 14 of Annex E for commercial information
• All requested information must be provided by the proposer

• Proposals must be submitted by email to supplybid@unicef.org
   • Maximum file size 25 MB
   • Must reference RFP Number and Company name in the subject line on all communication
   • Technical proposal and commercial proposal must be sent as separate files and clearly marked
2. Specific Terms and Conditions

Provides information on:
• the purpose and requirements of the Request for Proposal
• the Proposal submission schedule
    • Acknowledgement of receipt of the Solicitation document
    • Questions from Proposers
    • Contact email for communication – sietender@unicef.org
    • Important – Proposals are not to be sent to sent to the above email address. Any
      proposals sent to the above email will be disqualified
    • Deadline for questions/ clarifications on the tender document 23h59 Copenhagen time
      30th June 2019.
    • Submission deadline – 23h59 Copenhagen time 31st July 2019
• Proposal validity requirements
• Preparation of Offers
Commercial Response Structure

• The Commercial Proposal should be prepared
  in accordance with the quantities, terms and
  conditions and specifications outlined in the
  Solicitation Document

• The table provides an overview of the
  required response structure for the
  commercial submission including references
  and guidance on the completion of Annex E
  requirements.

• Scanned signed pdf copies in addition to
  the electronic (excel) versions of the
  templates provided under sections 1, 2, 3,
  4, 5, and 6 of Annex E are required to be
  submitted.

• Where variances between the scanned and
  electronic versions occur, the scanned signed
  version will prevail
3. Technical Provisions

• All Technical Provisions are detailed in Section 3.
• Product Technical Specifications are detailed in Annex 2.
• Technical Requirements are split into Medical Devices and Non-Medical
  devices.
• For AD and RUP syringes not previously supplied to UNICEF, UNICEF
  requires demonstration of a successful ‘user-friendliness’ field trial of
  production-run syringes for AD and RUP products.
    • Proposers are encouraged to submit field trials already undertaken with
      all supporting documentation for evaluation by UNICEF. If the field trial
      is deemed sufficient by UNICEF no further field trial would be required.
• Sample products may be requested.
• UNICEF Technical requirements are listed in Annex C.
Technical File Submission

• All technical documentation and
  information submitted for the
  products requested under this RFP
  is to be included and submitted as
  per the structure in Annex D.

• A check list for the documents
  required is provided under section
  3.6 of the tender document.
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 Annex E: Commercial Proposal
Submission Template and Forms
Annex E Commercial Templates
•   14 Sections

•   Scanned signed pdf copies in addition to the electronic (excel) versions of the
    templates provided under sections 1, 2, 3, 4, 5, and 6 of Annex E are required
    to be submitted.

•   Sections 4,5, and 6 to be completed for individual products

•   Table under section 2.6.5.10 provides an overview of the required

    documentation or information to be submitted
Annex E Commercial Templates

                               • Shared as winzip files

                               • Guidance as well as the response sheets
                                 are provided (where required)
Annex E Commercial Templates

Guidance is provided
and Forms are
provided in the folders
where required.
Section 4 Proposal sheets

Select the relevant tab for the products to offer, making a copy of the tab for each product offered.
Proposal sheets

The individual tabs are
different by product
category so ensure you
select the right tab for
the products offered.
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 RFP-DAN-2019-502979 Tender
Evaluation Criteria and Approach
Evaluation Approach

• After opening the Proposals, UNICEF will carry out the following
  steps in the following order:

• First, each Proposal will be evaluated for compliance with the
  mandatory requirements of the Solicitation Document
   • Mandatory requirements will be indicated throughout the RFP by the words
     "mandatory", "shall", "must", or "will" in regard to obligations on the part of the
     Proposer.

• Second, UNICEF will evaluate each Proposal to determine whether
  the products offered are acceptable commercially and technically and
  are of the required quality.
Mandatory requirements

 Commercial Evaluation:                    Technical Evaluation:
 • Compliance with Instructions to         • Compliance with Technical specifications
   Proposers
                                           • Independent laboratory test results within valid 4
 • Compliance with Financial Requirement     years (for AD, RUP, SB)
 • UNICEF General Terms and Conditions     • WHO prequalification status (for AD, RUP, SB)
 • Declaration of Country of Origin        • Conformity to the required Product Quality
                                             System Standards
 • Currency of offer (USD or Euro only)
                                           • Conformity to required QMS standards
 • Fixed and firm pricing (outside of
   alternative proposals)                  • Compliance with shelf life and sterility
                                             requirements
 • Technical proposals and commercial
   proposals submitted in separate         • Compliance with packing and shipping marking
   files/mails                               requirements
                                           • Compliance with inspection requirements
                                           • Submission of samples to UNICEF Supply
                                             Division Quality Inspection Unit (QIU)
                                           • Successful sample review and approval by QIU
                                           • QMS audit of manufacturer not older than 4 years
                                           • Validated user acceptability studies
Evaluation of Proposals and Basis of Award

• The evaluation consists of two main reviews: a Review of Mandatory
  Requirements and an Evaluation of Quantitative and Qualitative Data
  of the proposal.

• Following the Mandatory requirements evaluation, using the qualitative and
  quantitative information provided in the proposals, the proposals will be
  evaluated on their responsiveness and ability to meet the objectives of the
  tender and achieve the targets set, and considered against the other
  proposals received.

• The evaluation will be informed by the historic volumes and profile of
  demand per product.
Evaluation of Proposals in Support of the Objectives

• Objective 1: To ensure an uninterrupted, sustainable supply of affordable products that are
  in compliance with the required quality and technical requirements.
• Objective 2: To strengthen injection safety by reducing the risk of re-use, through a tender
  strategy that supports a preference for devices that have an activation of the auto-disabling
  feature commencing prior to delivery of the fixed full dose.
• Objective 3: Maintain a healthy market with multiple suppliers in the markets where this
  has been achieved and further improve the healthy market status where this is required,
  seeking further reductions in the weighted average price (WAP).
• Objective 4: Engage Industry to address programmatic and supply challenges, including
  new immunization strategies, reducing lead times and increased bundling of SIE offered
  products and resultant shipments.
• Objective 5: Reduce the overall cost to programs through the continued application of a
  landed cost evaluation criteria to better assess the full cost to programs.
• Objective 6: Implementing a more sustainable procurement approach encouraging product
  innovations that reduce the overall carbon footprint and waste disposal requirement.
• Objective 7: Support bundling of vaccines and injection devices.
• Objective 8: Improve the efficiency of the tendering, procurement and delivery processes.
Evaluation in support of achieving the Targets

Target 1: 20% of awards made to new Local Manufacturers by 2021
• This target has been included to (i) incentivize current WHO pre-qualified manufacturers in UNICEF
  Program countries to meet the full scope of UNICEF technical requirements, (ii) to grow local
  production and (iii) reduce environmental emissions from reduced shipment of finished goods.
• 6 percent of AD syringe awards were made to new local manufacturers under RFP-DAN-2017-
  502431 covering 2018-2019 demand.
• Local manufacturers are considered as manufacturers in UNICEF program countries that have not
  received an award from UNICEF previously (pre 2017). There is a UNICEF preference for ‘On
  continent’ (Africa) production.

Target 2: 80% of awarded quantities are bundled by 2021
• This target is established to (i) improve the overall efficiency of the procurement process and (ii)
  reduce the number of shipments required.
• 62 percent of AD syringe awards were made under bundled awards under RFP-DAN-2017-502431
  covering 2018-2019 demand, increasing from 40 percent in the prior tender round.

The achievements of these targets by 2021 will be taken into consideration in the evaluation process
subject to meeting tender objectives.
Evaluation of Proposals across the tender objectives and targets
Considering the objectives and targets the following approach will be taken in terms of the prioritization
of the evaluation of proposals meeting the mandatory requirements:

• Ensuring supply security and a sustainable interrupted supply of affordable products compliant to the
  required technical and quality requirements (objective 1) is the priority objective.
• Objective 3 further builds on this focus on ensuring a healthy market - with multiple suppliers (actual
  number dependent on the overall demand volumes) and prioritizing such over awarding to the lowest
  priced offer, and only after having healthy competition within a market, focusing on price.
• For the AD syringe demand the aspect of early activation of the disabling mechanism (objective 2)
  will be implemented as soon as the market has the capacity to provide such and would take priority
  over cost savings in the evaluation.
• Achieving Target 1 (20% of awards made to new local producers by 2021) will be prioritized over
  other objectives for products meeting (i) the mandatory, quality and technical requirements and (ii)
  preference for early activation of the disabling device provided the bids are considered reasonable. It
  is considered complementary to the development of healthy markets, supports objective 6 and is
  seen as complementary to objective 1 and 3.
• Sustainability criteria (objective 6) form 30% of the commercial evaluation criteria and will be
  incorporated within that scoring alongside the landed cost evaluation methodology (objective 5).
• Offers providing for consolidation opportunities and bundled deliveries supporting the achievement of
  objective 7, 4 and 8 and Target 2 (80% bundled awards [by Value] by 2021) will be considered
  following the fulfilment of objective 1, 2 and target 1 and will be reviewed considering the final
  commercial scoring after the inclusion of the sustainability and landed cost criteria.
Proposals for AD Syringes not meeting the UNICEF preference for the
early activation of the disabling mechanism

• If the proposer is WHO pre-qualified for the product offered but does not meet the
  preference for the location of the disabling mechanism and meets all mandatory
  requirements, the Proposal must include a detailed plan on the timeline outlining all steps
  to be taken to make the required changes and obtain WHO pre-qualification for the new
  product for the proposal to be considered.
• If the Proposal is deemed of interest to UNICEF, UNICEF will advise the Proposer of such
  and will request that UNICEF be kept informed about the progress of the submitted
  timeline.
• If the proposed AD Syringe meets the preference for the disabling mechanism and obtains
  WHO pre-qualification during the award period and upon confirmation that the mandatory
  requirements of the RFP are met, UNICEF would consider awarding a quantity to the
  manufacturer under one or more of the following conditions:
• UNICEF is facing a monopoly situation or a near monopoly situation;
• Lack of performance of current supplier(s);
• Insufficient supply from current supplier(s); or
• If it meets the specific objectives of the tender.
• The quantities considered for award would be those not met under established contracts
  or quantities that could be reallocated from existing arrangements after negotiation with the
  corresponding suppliers.
Quantitative Data considered for evaluation
Objective                           Evaluation to be undertaken based on the following factors
Affordable Product                  •   Price FCA nearest named international seaport/airport
                                    •   Price DAP UNICEF Copenhagen warehouse
                                    •   Payment terms
                                    •   Gross Weight and volume
                                    •   Product offered
                                    •   Shelf life
Quality Product                     •   Technical review
Uninterrupted, sustainable supply   •   Quantity offered; conditions of quantity offered, demonstration of capacity to provide quantities offered; possible
                                        effects of quantities offered on capacity for other products offered.
                                    •   Order Lead-time
                                    •   Total production capacity
                                    •   Validity of Proposal
                                    •   10% emergency buffer stock
Healthy Market                      •   Number of valid offers
                                    •   Reduction of weighted average price
Industry engagement in programmatic •   Alternative offers provided leveraging industry comparative advantage to get better results for children
and supply challenges
Reduce the overall cost to programs •   Landed cost as an evaluation criteria

Sustainable Procurement             •   Product Volumes, Product Weight
Bundling                            •   Alternative proposals for bundled Safe Injection Equipment
                                    •   Range of products offered
Qualitative Data considered for evaluation
Commercial Scoring

• The landed cost of the product will make up seventy (70) percent of the
  commercial score and factors in the geographic profile of demand
   • Proposers are required to submit their prices based on (i) FCA containerized nearest
     named port, and (ii) DAP Copenhagen Warehouse Incoterms.
   • The price evaluation will be based on an apportionment of 90% of the tender quantities
     under FCA incoterms, 10% of the tender quantities under DAP incoterms for Immunization
     related demand (Items 10 – 71) and 90% of the tender quantities under DAP incoterms,
     10% on FCA Incoterms for the Health Kit/Curative demand (Items 80 – 340).

• The sea shipment cost for a 40’ container for the seven identified ports from the
  named FCA ports submitted in the proposals will be provided by UNICEF
  contracted freight forwarders at the time of tender closure. The number of
  syringes per 40ft container will be factored in to get an average per unit cost for
  freight that will be added to the unit FCA price.

• The maximum number of points (i.e. 70 points) will be assigned to the lowest
  landed cost proposal. All other landed cost proposals will receive points in inverse
  proportion to the lowest landed cost.
Commercial Scoring

• The sustainability score will make up thirty (30) percent of the overall commercial
  score.
• The specific measurables to assess the sustainability elements relate to the
  weight and volumes of the products, based on the shipping carton and
  apportioned per product.
   • These two components both impact on the volume of product to be shipped around the world
     and the weight of the product (and packaging) that needs to be disposed of and are under the
     control of the producer in terms of design.
• The total amount of points allocated for the sustainability component is 30. The
  maximum number of points (i.e. 15 points) will be assigned to the lowest weight
  and to the lowest volume proposal to factor the transportation of the product and
  the disposal of the product. All other weight and volume proposals will receive
  points in inverse proportion to the lowest weight/ volume.
Commercial Scoring Example

      Based on Landed Cost Only ranking would have been Supplier 3,1,2,4, then 5
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2020-2021 SIE Planned Tender Timeline
Planned SIE Tender Timeline

      ACTIVITY                                     TIMELINE
      Draft procurement strategy                   Mid-March 2019
      Bidders’ Conference (Webinar) – pre-tender   3rd June 2019
      Issuance of Tender                           4th June 2019
      Period for Tender Clarifications             4th June – 30th June 2019
      Closing of tender                            31st July 2019
      Evaluation                                   August - September 2019
      CRC approval                                 CRC Submission Early October 2019
      Announcement of awards                       End October 2019
      Commencement of LTAs                         1st January 2020
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Additional reference materials
Additional Reference Materials

• Reference information from the industry
  consultation for the prior tender round is
  available at the following links on the
  UNICEF Website for reference.

• https://www.unicef.org/supply/index_94621.
  html (Link to the last SIE industry
  consultation held in 2017)

• https://www.unicef.org/supply/index_10061
  9.html [Link to Bid Conference (webinar)
  held in 2017]
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Communication
Communciation
• All clarification requests related to the tender via email address:
• sietender@unicef.org

• Note: All invitees will be copied on responses to clarifications
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Questions and Answers Session
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         3rd June 2019

Thank you!
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