National Project Implementation Plan - NVBDCP

12.2 Assessment of the Procurement Capacity of the Implementing
Agencies
12.2.1 Institutional Set-up for Procurement for NVBDCP
MOHFW has established an Empowered Procurement Wing (EPW) to
professionalize the procurement of health sector goods and services under
centrally sponsored health programs. Prior to formation of EPW, MOHFW did
not have a Central Procurement Organization and both health and family
welfare departments had separate purchase committees. Director
(Procurement) under DGHS and Director (SSM) & Director (UIP) under the
supply division handled procurement related activities in the Ministry. In
addition, program divisions procured their respective requirements either
directly or through Procurement Support Agencies (PSAs) which did not handle
procurement on a turn key basis. As per its mandate, EPW is responsible for
handling the strategic procurement and providing oversight for the
procurement handled under different centrally sponsored health schemes.
However, in practice EPW plays relatively limited role in supervising the
procurement in MOHFW. The services of PSA are being used for handling most
of the NVBDCP procurement funded by the domestic budget. An internationally
selected consultancy with appropriate technical expertise in pharmaceuticals,
biomedical engineering, quality assurance, IT and supply logistics, is helping
EPW in developing its capacity. EPW is also utilizing the services of in other
matters such as reviewing specifications of items being procured by MOHFW
etc. Under the current procurement arrangement for the project, where most
of the procurement is to be handled by the procurement agent, the role of EPW
is not significant, and its current lack of capacity will not adversely affect the
project implementation.
MOHFW has hired the services of the United Nations Office for Project Services
(UNOPS) on May 30, 2007 to act as procurement agent for handling the
procurement of health sector goods under donor funded projects. As per the
agreed matrix of responsibilities, UNOPS is handling the procurement on
turnkey basis and seeking only the financial concurrence of MOHFW before
entering into the contract with suppliers. NVBDCP is responsible for providing
technical specifications, quantity to be procured, delivery schedule and the list
of consignees to UNOP after getting approval from MOHFW.
UNOPS is following the World Bank procurement guidelines for all the
procurement where it is acting as procurement agent. UNOPS is having a well
laid down internal control system in place, which involves review of all the
contracts exceeding US$ 100,000 in value. UNOPS has contracted independent
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