Transcript Procurement under the Terms and Conditions of the Advance Market Commitment AMC Pre-tender meeting UNICEF SD, 26 August 2009 Tania Cernuschi and Ann Ottosen.

Procurement under the Terms and
Conditions of the Advance Market
Commitment
AMC Pre-tender meeting
UNICEF SD, 26 August 2009
Tania Cernuschi and Ann Ottosen
Presentation Overview
1. AMC Procedures Memorandum
2. Request for Proposal (Call for Offers)
3. Supply Agreement Terms and Conditions
1. AMC Procedures Memorandum
Overview of the AMC from a Supplier’s
Perspective
1. AMC Registered Manufacturer
Registration Procedures
Only AMC Registered Manufacturers are eligible to
make a supply offer in response to a UNICEF Call for
Offers – and to forward a vaccine application for AMC
eligibility
An AMC Registered Manufacturer Application Package
may be forwarded to the AMC Secretariat at any time
UNICEF receives copy of info package and the AMC
Registered Manufacturer Agreement between
manufacturer and IBRD and GAVI when entered into
AMC Registered Manufacturer Application
Package
• Details of applicants legal status and corporate info
• Particulars of manufacturing license and registration
from NRA, if any
• Info on vaccine production, supply/delivery activities,
overview of existing portfolio, years of production,
quantities supplied annually over past three years,
number of countries where vaccine is licensed and
marketed
• Timeline for Application for vaccine Eligibility, if any
No special template is required
AMC Registered Manufacturer
Agreement
A manufacturer intending to participate in AMC
Pneumo Initiative
Obligations in Agreement
• To accept T&C of the AMC including Supply Agreement
• To accept IAC determinations on AMC Eligibility
• To provide an annual update on expected timing for
application for Eligibility and WHO pre-qualification
• To inform of Suspension Events, e.g. revoke of licensure,
insolvency, material inquiry
No obligation to make a Supply Offer
2. Application for AMC Eligibility
To be submitted to the AMC Secretariat any time, but
at the earliest upon WHO acceptance to review PSF
The AMC-Eligible Vaccine Information Package
• PSF or written confirmation from WHO for acceptance of
PSF for review
• “Target Product Profile Eligibility Justification Document” of
how the vaccine meets the TPP
• Refer to information in PSF, or
• Provide a clear explanation of how the vaccine meets
the TPP
Not a requirement in order to make a Supply Offer
Application for AMC Eligibility
IAC review no later than 30 days after receipt of
application
• Submit questions if any to WHO to clarify any aspects of the
application
• May request technical assistance from WHO in review and
assessment of any criteria related to requirements of TPP
which are not PQ requirements
• Vaccine serotypes cover at least 60%, include 1, 5 and
14
• Documented in u/5’s and in particular effective in <2
years
• Fit in national immunization programmes, no more than
3 doses in first year of life, first to be administered at 6
weeks
• Liquid formulation, 0.5ml/dose
• Administration: im/sc
Application for AMC Eligibility
IAC Eligibility Determination Meeting no later than 30
days of receipt of application for PQ’ed vaccine
• Request a written report from WHO on how TPP criteria that
are also PQ requirements are met
• Immunogenicity, safety, co-administration,
presentations, cold chain requirements, packaging and
labeling, product registration and PQ, and post
marketing surveillance
• Review and consider if vaccine meets the non-PQ
requirements of the TPP (serotypes composition, isolate
coverage etc.)
Outcome to be communicated to supplier within
15 days
To sum up
• Manufacturers need to register in order to be eligible
to make a supply offer
• Manufacturers need to have their vaccine approved
for AMC eligibility in order to supply
2. Request for Proposal/Call for Offers
Timeline for Request for Proposal
Request for Proposal/Call for Offers
Triggers of a Call for Offers
• (AMC Registered Manufacturers)
• Release of GAVI Strategic Demand Forecast (6 August)
Call for Offers to be issued 20 days after release of
any new GAVI SDF, provided
• Increase in GAVI SDF by ≥ 10M doses annually for next 5
years, or
• Unallocated quantities which exceed 10M doses annually
If conditions not met UNICEF will issue notification
The Pneumococcal AMC pilot
Overarching goal: reduce morbidity and mortality from
pneumococcal diseases. Target: save more than 7 million lives
by 2030
 Main objectives:
• Bring forward the availability of effective pneumococcal
vaccines - scale up of production capacity.
• Accelerate development of second generation vaccines that
meet developing country needs.
• Accelerate vaccine uptake - predictable vaccine pricing for
countries and manufacturers.
• Test AMC concept
Pneumo AMC financial commitment: support pneumococcal
vaccine market with US$ 1.5 billion
15
Procurement Objectives
1. Bring forward the availability of effective
pneumococcal vaccines - ensuring supply for the
actual demand as approved
2. Selecting products and presentations that best meet
the country preferences
3. Continued vaccine supply and contributing to the
creation of a healthy vaccine market including
multiple suppliers
To ensure access to sustainable supply of PV from AMC
Registered Manufacturers to meet demand from 2014-2024
From 2009 to 2011, 13 GAVI-supported countries are
approved to introduce PCV
•2 countries have introduced PCV7 in 2009 through a donation
•11 countries to introduce vaccines with more serotypes by 2010 and 2011, covering
a birth cohort of ~7.3M children
•Demand based on current GAVI approvals in 2010: ~19M doses
•15 countries are expected to apply in September 2009 for introduction in 2H 2010
Approved for intro
Conditional approval
First Strategic Demand Forecast
Millions of doses
Pneumococcal Vaccine - AMC Required Supply (72 GAVI eligible countries)
250
222 223 224 224 224 223 223 223 222 222 222 221
202
187
2
11
2
11
15
2
6
14
12
139
14
12
127
2
3
12
2
4
11
14
200
167
150
9
100
88
67
44
50
-1
1
-
3
11
3
11
3
11
3
11
3
11
3
11
3
11
3
11
3
11
3
11
3
11
15
15
15
15
15
15
15
15
15
15
15
15
13
13
13
13
13
14
14
14
14
14
15
15
76
75
74
74
73
72
71
70
70
69
68
68
105
107
108
109
109
109
109
110
110
110
110
111
61
50
36
12
12
-2
6
-5
-2
3
-2
89
-2
3
-3
19
12
2
11
96
96
97
101
75
60
36
18
-1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Other countries
India
Nigeria
Pakistan
Indonesia
PAHO
First Strategic Demand Forecast ~
UNICEF forecast
140,000
120,000
100,000
80,000
60,000
40,000
20,000
thousands
-
2009
2010
2011
2012
2013
2014
800
24,200
44,800
84,000
4,114
16,500
16,800
17,100
17,500
19,000
26,800
27,300
27,900
28,400
Possible introduction (SDF)
Likely introduction
Predictable demand
1,600
Uncertainties related to the first SDF
Early forecasts tend to be more optimistic in terms of
starting date of uptake
First time to base procurement on the SDF model –
validation of model assumptions on country
applications following Sept applications
Refinement of model ongoing e.g. with regards to
coverage, to be included in 2nd CFO
Uncertainties related to the first SDF
Lessons learned from HepB and Hib forecasting –
vaccine volumes highly dependant on actual year of
intro from a small number of very large countries
Review of eligibility of GAVI countries and co-financing
levels in 2010 and 2011
Request for Proposal/Call for Offers
Technical and Financial Mandatory Requirements
• For vaccines not yet approved by IAC, written confirmation
from WHO of acceptance of PSF, IF APPLICABLE
• Most recent Audited Financial Statement
• Quality System Certificate
• UNGM code
• The Supplier’s Vaccine Production Plan….
All Registered Manufacturers may offer irrespective
of status of PSF
The Supplier’s Vaccine Production Plan
• Product and production capacity development
• Status and plans, sourcing of bulk, planned
presentations and packaging, capacity
• Description of sites and timelines for development
• Clinical trials conducted and planned, timelines
• Post marketing surveillance strategy
• NRA status and plans for registration, and release NRA
• WHO pre-qualification timelines, if applicable
• Timeline for forwarding application for Eligibility
• Status and timelines for submission to NRA and WHO for
approval of manufacturing site, if applicable
• Expected date for providing Vaccine Purchase Period
Trigger Notice (at the latest 3 months before Vaccine
Purchase Period)
• Expected date for commencement of the Vaccine Purchase
Period
Request for Proposal/Call for Offers
Qualitative Requirements
• Product, schedule, standard shelf life, vial size and
presentation, weight and volume
• Number of years the manufacturer has produced and
delivered the offered product(s)
• Impact on production of other products
• Experience in vaccine production and delivery of similar
scale to that offered
• Quality aspects, including quality control and any past noncompliance or irregularities
• Account management information
Request for Proposal/Call for Offers
Quantitative Requirements
• Supply Commitment Quantities on an annual basis for the
Vaccine Purchase Period
• Commencement date of 10 year Purchase Period
• Price quotation for the Tail Price in US$
• Production and availability forecasts
Manufacturers may make several proposals with different
commencement dates if within SDF and for alternative
presentations
Illustration of alternative offers from a
manufacturer in response to 1st Call for Offers
Request for Proposal/Call for Offers
Assessment of Supply Offer and determining award
quantities to a supplier
• Ability to meet Objectives including quantities offered and
timelines for availability
• Feasibility of the Supplier’s Vaccine Production Plan
• The offered Tail Price including waiver or modifications of
the inflation adjustment provisions
• Experience in vaccine production and delivery of similar
scale
• Past performance record with UNICEF, if applicable
Award recommendation
UNICEF
• Will base award recommendation on assessment of the
offer and the WHO technical review, to be presented to PRG
for advise and to be approved in accordance to UNICEF
standard processes
• May enter into a Supply Agreement with an AMC Eligible
Manufacturer and a Provisional Supply Agreement for
vaccines which have been accepted for review by WHO
• May decide to award less than the total quantity forecasted
if it is considered that vaccines in pipeline could reach the
market within the next 5 years to meet objectives of multiple
suppliers
Request for Proposal/Call for Offers
Confidentiality
• All information provided by a supplier as part of the offer is
considered confidential. Both PRG and WHO technical
assessor sign confidentiality agreements with UNICEF
• Due to the strategic nature related to which suppliers are
making supply offers for vaccines in development, there will
be no public opening
3. Supply Agreement Terms and Conditions
Supply Agreement Terms and Conditions
Few input fields (art II, para 1, 3 and 9, art VII, para 3)
• Suppliers Annual Vaccine Supply Commitment Quantity in
doses to be supplied for 10 years
• Vaccine Purchase Period commencement date
• Tail Price offered in US$ (max US$3.50)
• FCA Named airport
The terms and conditions of Supply Agreement are
non-negotiable – Registered Manufacturers
acknowledged and agreed by signing Registered
Manufacturer Agreement
Suppliers’ commitments
To make available annually for 10 years the quantities at a Tail Price
To issue Vaccine Purchase Period Trigger Notice at the latest 3 months
before commencement of Vaccine Purchase Period
To deliver an update every 6 months on the implementation of Supplier’s
Vaccine production Plan until Trigger Notice
To notify UNICEF immediately if becoming aware of factors indicating a
delay in the issuance of Vaccine Purchase Period Trigger Notice
Make the annual quantities available, distributed reasonably throughout
any 12 months period as per procurement forecast
From first supply availability to provide six monthly forecasts indicating
monthly availability for upcoming 12 months, and quarterly for the period
thereafter
Suppliers’ access
Access to the AMC subsidy and demand in GAVI countries
Firm contracts for 20%,15%, and 10% of annual quantities in each
Supply Agreement in year 1-3 of the Vaccine Purchase Period
To supply prior to the commencement of Vaccine Purchase Period
provided there is demand
To reduce the duration of agreement through early supply
To increase quantities under agreement through early supply
(require agreement with UNICEF and GAVI Board approval)
Supply Agreement Terms and Conditions
Automatic termination (art II para 3+5, art VIII para 9)
• If a supplier fails to deliver the Vaccine Purchase Period
Trigger Notice 3 months prior to Vaccine Purchase Period
• Supplier shall within 30 days repay the total amount of AMCFunded Price paid prior to termination
• Should the Supplier advice UNICEF in advance, then the
Parties may review and negotiate in good faith new
applicable conditions and timing
• UNICEF may agree to extend commencement date by up to
a total of 60 months from date of agreement
Supply Agreement Terms and Conditions
Possible adjustments to Total Vaccine Supply Quantity
(Art IV para 3):
If UNICEF’s Annual Demand Forecast for any 12
month period is lower than the Supply Commitment
Quantity
• Supplier may decide to make lesser amounts of vaccines
available without penalty, to inform UNICEF in writing
• Supplier may propose to reduce Commitment Quantity for
next 12 month period, to be agreed by UNICEF and GAVI
Supply Agreement Terms and Conditions
Possible adjustments to Total Vaccine Supply Quantity
(art IV para 4+5) - continued:
• If the GAVI SDF projects a reduced demand for a period of no
less than 3x12 months during the Vaccine Purchase Period, and
supply on all SA exceeds demand – Commitments may be
reduced, to be agreed between UNICEF and Supplier
• At any time upon request by Supplier, UNICEF may reduce
Commitment Quantity by such amount and for such period and on
terms as UNICEF may determine in consultation with GAVI
without compromising AMC objectives
Supply Agreement Terms and Conditions
UNICEF change or amendments to standard PO and
General Terms and Conditions (art VI para 3)
• To notify the Supplier of changes material to the SA
• Supplier has 30 days notice to give UNICEF 90 days written
notice of withdrawal from Agreement without penalty, but
also without claims
Supply Agreement Terms and Conditions
Effectiveness of agreement the later of
• a) signing by both parties,
• (b) notice from GAVI to UNICEF that the SA is consistent
with AMC T&C
Awards for Supply Agreements will be published on
the UNICEF website with regards to supplier name,
date of entry into SA, total award value, duration of
SA and Tail Price
In conclusion….
Procurement under the AMC Terms and
Conditions
First Request for Proposal/Call for Offers under AMC planned to
be issued 2nd September
Any manufacturer expecting to be able to have supply availability
to UNICEF within 60 months should register and make an offer
AMC Provisional Supply Agreements and/or Supply Agreements
following this Call for Offers provided valid offers to be in place
January 2010
First supplies with countries as soon as possible, and best case
late Q1
Next RFP/CFO to be issued following GAVI Board approval of
new applications and update of SDF, expected January 2010
UNICEF VACCINES
Thank You