Download PROCUREMENT

Differential Pricing
UNFPA’s Experience With
Contraceptives
Christian Saunders,
Chief, Procurement
Services
Every Minute in the World
380
women become pregnant
190 of these women
did not plan or do not wish the
pregnancy
Every Minute in the World
110 women
experience a pregnancy-related complication
40 women
have an unsafe abortion
1 woman
dies from a pregnancy related cause
Every Minute in the World
650 people
are infected
with a curable STI
Every Minute in the World
10 people
are infected with HIV
ICPD +5
Governments should strive to ensure that
by 2015 all primary health-care and family planning
facilities are able to provide directly or through referral,
the widest achievable range of safe and effective family
planning and contraceptive methods; Essential obstetric
care; Prevention and management of reproductive tract
infections, including sexually transmitted diseases; And
barrier methods, such as male and female condoms and
microbicides if available, to prevent infection.
Paragraph 53, ICPD +5
The United Nations Population Fund (UNFPA)
Advancing universal access to reproductive health
·
·
·
·
Family planning and safe motherhood
Preventing sexually transmitted infections, including HIV/AIDS
Care for consequences of unsafe abortion
Eliminating harmful traditional practices
Advocating informed, responsible and free choices
·
·
Women’s rights to health, education and freedom from violence
Sustainable development
Formulating population strategy & policy
·
·
Partnerships with governments, NGOs, the private sector and
UN agencies
Research on population issues
Does Price matter?
For every $1 million shortfall in
contraceptive commodity assistance:
• Increase in the number of unintended pregnancies: 360,000
• Additional induced abortions: 150,000
• Additional maternal deaths: 800
• Additional infant deaths: 11,000
• Additional deaths of children under 5: 14,000
Procurement
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•
•
•
UNFPA is the largest public sector purchaser of
contraceptives. Also supplies commodities for
social marketing programmes.
Procurement undertaken by UNFPA is carried
out through a fair & transparent process.
UNFPA utilizes competitive bidding and direct
negotiation in the case of proprietary products.
Long term pricing agreements have been
negotiated with many of the manufacturers.
UNFPA vs. MARKET PRICE
(US$)
•
•
•
•
•
•
UNFPA
Condom (piece)
IUD (Unit)
Injectable (dose)
OCs (cycle)
Spermicides (tablet)
Implants (set)
0.025
0.430
0.675
0.175
0.060
23.000
US MARKET
0.50
350.00
65.00
30.00
1.20
393.00
Cost per year of coverage
(US$)
•
•
•
•
•
•
•
•
Condom
IUD
Injectable
OCs
Spermicides
Implants
Surgical (female)
Surgical (male)
UNFPA
3.75
0.10
2.70
2.10
9.00
4.60
1.06
0.60
US MARKET
75.00
70.00
65.00
360.00
180.00
79.00
Possible Factors Affecting Price!
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•
•
•
•
Volume
Procurement Process
Market Share
Image
Philanthropy
$55.00
$50.00
$45.00
$40.00
$35.00
$30.00
$25.00
$20.00
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
US$ (Millions)
Procurement Volume
Year
Procurement Process
–
–
–
–
–
–
–
–
–
–
–
–
Competition
Experience
Professionalism
Quality
Single client
Uncomplicated
Transparent
Long term partnership with strategic suppliers
Standardization
Forecasting allowing for planned production
Flexibility
Guaranteed Payment
YEAR
UNFPA
USAID
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
0.24
0.22
0.2
0.18
0.16
0.14
0.12
0.1
19
82
US$
ORAL CONTRACEPTIVES -‘THE PILL’
YEAR
UNFPA
USAID
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
19
82
US$
CONDOMS
YEAR
UNFPA
USAID
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
1
0.95
0.9
0.85
0.8
0.75
0.7
0.65
0.6
19
82
US$
INJECTABLES
UNFPA
YEAR
USAID
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
19
82
US$
IUDs
1.7
1.5
1.3
1.1
0.9
0.7
0.5
0.3
UNFPA
YEAR
USAID
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
19
82
US$
SPERMICIDES
0.2
0.15
0.1
0.05
0
Sub dermal Implants
30
20
15
YEAR
UNFPA
USAID
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
10
19
82
US$
25
90
80
70
60
50
40
30
20
10
0
Developing Countries
Developed Countries
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
PERCENTAGE
Source Of Procurement
YEAR
Differential Pricing
PROPRIETORY PRODUCTS
Example
Product ‘X’
(Oral Contraceptive Under Patent)
UNFPA's price US$ 0.364/cycle
US Market price : US$ 34.00/cycle
UNFPA - Future Action
“Rapid population growth and high fertility hold back development
and help to perpetuate poverty.”
179 countries adopted the ICPD Programme of action in Cairo in 1994.
Five years later, a review identified key areas for urgent action. .
-
Contraceptives for couples wishing to space or limit families.

Availability of a wide range of safe and effective family
planning methods.

-
Births assisted by skilled attendants.
Condoms, voluntary testing and counseling to reduce the
spread
of HIV/AIDS
among young people.
Literacy for women and girls.
School enrolment, especially for girls.
The Future
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E-commerce
Competition
Group buying
Standardization
choice vs. security