Historically, these institutions developed their product lists, sourced vendors, negotiated prices and procured these items separately. In February, with the help of the USAID Global Health Supply Chain Program-Procurement and Supply Management (GHSC-PSM) project, the MOH and IGSS officially committed to combining their purchasing power by using a joint procurement mechanism for the first time. As part of this collaboration, they are harmonizing their list of medicines, so that prices can be negotiated by the selected procurement agent at a higher volume, achieving greater economies of scale.
On behalf of the MOH and IGSS, GHSC-PSM evaluated several procurement agents available within the region based on their ability to encourage market competition, lower prices and achieve best value for money.