Centralised Tender (Bid)

The OECS/PPS presented suppliers with a public sector monopsony or a purchasing cartel so that products tendered by OECS/PPS are purchased exclusively through annual contracts.  Prior to the establishment of OECS/PPS, the OECS countries purchased drugs individually from suppliers by direct negotiation.  The cost of pharmaceuticals in any country depended on the following factors: professional attitude and negotiating skills of the supplies officer, governments’ payment track record, and source of supply.  Consequently, drug prices for similar products varied widely among OECS countries.

OECS/PPS operates a centralized, restricted tendering system in which all approved suppliers are pre-qualified by a vendors’ registration questionnaire.  Pre-qualification is necessary to assess the quality standards, technical competence, and financial viability of competing suppliers.  Following a bid solicitation from over 75 international suppliers, OECS/PPS awards annual contracts, place orders directly with suppliers, and monitors delivery and supplier performance.    OECS/PPS does not warehouse supplies, but instructs suppliers to ship consignments directly to participating countries which in turn reimburse their respective ECCB drug accounts. The procurement and payment cycle is shown diagrammatically (Fig 3).

Recognising the success with the pooled procurement of pharmaceuticals, OECS/PPS has rapidly expanded its product portfolio to include medical supplies, contraceptives and x-ray consumables.  The OECS/PPS has now been mandated to explore the feasibility of purchasing dental and laboratory supplies.   During the 2001/2002 tender cycle, the Unit purchased US $3.5 million worth of supplies for the 9 OECS member states 3 (Fig 4).