Developing NBA contract management framework and approach for commercial blood product contracts

NBA commercial contracts

Four groups of commercial contracts (14 contracts in total):

• CAFA• Imported Plasma and Recombinant Products (IPRP)• Imported IVIg• Red Cell Diagnostic Products (RCDP)

Total annual value $485m in 2011-12

Prompts for improvementANAO performance audit and internal audits (GORV, IDMS)

Plasma and recombinant products ‘Supply Chain Improvement Program’ (outcome of the Distribution Review) endorsed by JBC

– part 1 - develop a clear position on information requirements and performance standards for supply chain

– part 2 - improving the supply chain to the required information and performance standards

– part 3 - consolidation of supply chain for clotting factors

NBA contract reviews of current contracts prior to tenders

NBA pre-tender stakeholder consultations

Increasing systems / data strategy emphasis

– broadening information in NBA annual report– formalisation of IDMS data file requirements plus non-IDMS data and reports– development of BloodNet and redevelopment of ABDR– development of sector scorecard

Improvements in contractsIn addition to benefits of current contracts:

Home delivery standardised against AHCDO/AHNG guidelines

Tightened performance requirements (delivery times, DIFOT, minimum shelf-life, reserve holding) and improved reporting (including home delivery supply, standing inventory arrangements, post-marketing information)

Additional supply security through 3 months ‘committed global stock’

Improved definition of requirements for product support, and better delineation of role of supplier vis a vis clinicians and patients

Specific requirements for customer feedback framework

Commitment to supply chain and environmental sustainability initiatives

Requirements to provide additional needles, pooling vials, etc clarified

Specific requirements in the case of a product recall

Removal of price confidentiality restrictions

Commercial contract management – approach

Generally adopting a managed business process approach

Managed suite of documentation:

– Contract and variations– NBA business system documents – NBA internal policy, process and templates, eg

• meeting and management timetable• internal monthly reporting framework against supply, contract and contract

management KPIs• policy for calculating and applying contract KPIs• accountability framework, including updated auditing processes

– Protocols – issued under the contracts– Supplier reporting templates - issued under the contracts

– Scheduled, routine cycles of business

– A ‘no surprises’ approach of open dialogue

Contract management – development

Phase 1: Using the IPRP contracts to work through and design the full contract management framework, with supplier reports/data and key protocols initial focus.

Phase 2: Test the range of outputs from Phase 1 through consultations internally and with suppliers. Refine as necessary and initially implement all reporting and systems elements Target: End June 2012

Phase 3: Progressively transfer elements from phases 1 and 2 as may be applicable for imported IVIg, RCDP and CAFA contracts. Target: December 2012

Contract Management – Development Approach

Phase 4: Consolidate the elements that are consistent across all commercial contracts as “NBA Contract Management” standards, specifications and procedures. Target: December 2012

Phase 5: Continue development and implementation of unique contract management elements – finalising the contract management framework – apply continuous improvement. ongoing.

Contract Management – Phase 1

• Protocols:• Customer feedback• Urgent orders• Home delivery

• Supplier reports:• Notifiable events• Notices• Monthly invoicing• Stock movement• Stock count• Billing• Reconciliation macro• In Country Reserve• Committed Global Stock• Orders and delivery• Performance• Report certification• Service and quality