Contraceptive Procurement Guide and Product Catalog 2006
Publication date: 2006
i Contraceptive Procurement Guide and Product Catalog 2006 ii USAID Contraceptive Procurement Guide 2006 DELIVER DELIVER, a six-year worldwide technical assistance support contract, is funded by the U.S. Agency for International Development (USAID). Implemented by John Snow, Inc. (JSI), (contract no. HRN-C-00-00-00010-00) and subcontractors (Manoff Group, Program for Appropriate Technology in Health [PATH], and Social Sectors Development Strategies, Inc.), DELIVER strengthens the supply chains of health and family planning programs in developing countries to ensure the availability of critical health products for customers. DELIVER also provides technical management of USAID's central contraceptive management information system (NEWVERN). This document does not necessarily represent the views or opinions of USAID. It may be reproduced if credit is given to John Snow, Inc./DELIVER. Recommended Citation DELIVER/John Snow., Inc. 2005. USAID Contraceptive Procurement Guide and Product Catalog 2006. Arlington, Va.: DELIVER/John Snow, Inc., for the U.S. Agency for International Development. Abstract The USAID Contraceptive Procurement Guide and Product Catalog 2006 is an annual publication of current contraceptive ordering procedures for Missions. It includes (1) USAID contraceptive ordering procedures (2) guidance on how to use logistics data and forecasts to calculate contraceptive requirements and (3) a catalog of contraceptives provided by USAID. DELIVER John Snow, Inc. USAID 1616 North Fort Myer Drive, 11th Floor Bonita Blackburn Arlington, VA 22209 USA GH/PRH/CSL Phone: 703-528-7474 1300 Pennsylvania Ave., NW Fax: 703-528-7480 Third Floor, Ronald Reagan Building Email: firstname.lastname@example.org Washington, DC 20523-3601 Phone: 202-712-4539 • Fax: 202-216-3404 E-mail: email@example.com Table of Contents Acronyms and Terms v I. USAID Funding and Contraceptive Procurement Procedures 1 Central Contraceptive Procurement Timeline 1 Transferring Required Funds 2 Operating Year Budget Transfers and Requests for Field Support 2 Use of Funds Obligated at the Mission Level (MAARD Funds) 4 Commodity Fund (CF) 5 Ordering Contraceptives 6 Contraceptive Registration 8 Monthly Cables 8 Acknowledging Receipt of Shipments 13 II. CPT Guidance 15 Overview 15 Summary of Steps in Preparing CPTs 15 Collecting the Data 16 Step 1. Determine which program(s) and contraceptive products will require CPTs. 16 Step 2. Determine or estimate the quantity of stock on hand. 17 Step 3. Estimate past, present, and future use or distribution to users. 17 Step 4. Determine or estimate past and future losses, transfers out, and adjustments. 18 Step 5. Identify the contraceptives received to date or scheduled to arrive (including transfers from other programs). 19 Step 6. Set desired end of year stock level. 19 Completing the 2006 Contraceptive Procurement Table (CPT) 20 Step 7. Complete the CPT form with program data. Do the calculations. 20 2006 Contraceptive Procurement Table 21 Step 8. Complete CPT annex, page 1. 24 Documentation of CPT Figures 24 CPT Annex, Page 1: Documentation of CPT Figures 25 Requirements Estimation 26 Step 9. Determine quantities needed in CY2006 and CY2007. 26 Step 10. Propose new supply for CY2006 and CY2007. 26 Step 11. Estimate quantity needed for CY2008. 26 Step 12. Complete CPT annex, page 2. 27 CPT Annex, Page 2: Proposed Supply 28 III. Attachments 29 2006 Contraceptive Procurement Table CPT Annex, Page 1: Documentation of CPT Figures CPT Annex, Page 2: Proposed Supply Criteria for Evaluation of a Set of CPTs Freight as a Percentage of Commodity Value Report Shipping Lead Time Report USAID Contraceptive Commodity Disposal Guidelines Figures 1. USAID Contraceptive Procurement Timeline 1 2. Sample Contraceptive Order E-mail 7 3. Sample Monthly Cable 9 4. Sample USAID Receiving Report 14 Inserts Job Aid: Filling out the CPT Product Catalog Product Information Pages Price List iii USAID Contraceptive Procurement Guide 2006 iv Acronyms AIDS acquired immune deficiency syndrome BOYS beginning of year stock CA USAID cooperating agency CCP Central Contraceptive Procurement CSL Commodities Security and Logistics Division, Office of Population and Reproductive Health, Bureau of Global Health, USAID CPT Contraceptive Procurement Table CY calendar year CP Congressional Presentation DEOYS desired end of year stock EOYS end of year stock FY fiscal (financial) year, October 1–September 30 LMIS logistics management information system MAARD Modified Acquisition and Assistance Request Document NGO nongovernmental organization OYB Operating Year Budget STI sexually transmitted infection USAID/W U.S. Agency for International Development/Washington UNFPA United Nations Population Fund Terms consignee Organization that will receive a shipment of contraceptive commodities. DELIVER A worldwide technical assistance support contract, funded by the Commodities Security and Logistics Division (CSL), Office of Population and Reproductive Health, Bureau of Global Health, U.S. Agency for International Development (USAID). NEWVERN CSL’s automated contraceptive order, processing and financial management system. minimum The level of stock at which actions to immediately replenish inventory should occur under normal conditions. maximum The level of stock above which inventory levels should not rise under normal conditions. PipeLine Pipeline monitoring and procurement planning software developed and distributed by DELIVER for USAID. v USAID Contraceptive Procurement Guide 2006 vi USAID Funding and Contraceptive Procurement Procedures I. USAID Funding and Contraceptive Procurement Procedures Central Contraceptive Procurement Timeline In order for the Commodities Security and Logistics Division (CSL) to plan procurement to meet program needs, Missions should determine the quantities of contraceptives they expect to order and the level of funding they will need to allocate in a timely manner. Ideally, the 2006 Procurement Tables (CPTs) should be done between October 2005 and March 2006, and should include a procurement plan for changes in contraceptive orders for calendar year (CY) 2006 and new orders for 2007. In early 2006, CSL will review the forecast information provided in the Mission’s CPTs and propose the funding level needed to supply the contraceptives proposed in the CPTs, taking into consideration the Mission’s contraceptive account balance. In February 2006, CSL will send this information to Missions in the annual “Snapshot” Report. Missions have time to review the Snapshot Report and allocate field support for central contraceptive procurement by the end of March, based on CPTs, Snapshot Report, and knowledge of programs. Once CSL knows the value of FY2006 field support or other funding that Missions plan to provide, they use CPTs to determine global quantities needed in CY2007, and can obligate funds into production contracts (see figure 1). Figure 1. USAID Contraceptive Procurement Timeline 1 USAID Contraceptive Procurement Guide 2006 Transferring Required Funds All funding requests for shipments through calendar year 2007 (CY2007) must be submitted to the central contraceptive procurement system during fiscal year 2006 (FY2006). This will give the Commodities Security and Logistics Division (CSL) enough time to set production levels for CY2007 and to plan the obligation of funds. Missions provide funds for contraceptive procurement through any mechanism permitted by reengineering. Funds already obligated by Missions (MAARD funds) can be provided under the conditions outlined in section II. Direct all funds for contraceptive procurement to the Central Contraceptive Procurement Project, 936-3057. Missions that provide funding for contraceptives, including field support funding, should advise CSL by email of their funding source and how funds will be transmitted. Operating Year Budget Transfers and Requests for Field Support Procurement Table (CPT) analysis provides each Mission or Bureau that requires contraceptives with estimates of their product-related Operating Year Budget (OYB), and Congressional Budget Justification (CBJ) funding requirements for contraceptive procurement. Collectively, CPTs enable CSL to estimate overall procurement levels and to plan contracting actions, ensuring the continuous f low of shipments to programs supported by Missions and Bureaus. Each Mission or Bureau is responsible for ensuring that the funding levels derived from CPTs are consistent with their overall availability of funds and the funds budgeted for contraceptives in related projects. Annually, CSL will also advise Missions of the surcharge percentage they will be assessed to cover system costs, including— • Inland transportation to the USAID warehouse and warehousing of USAID products. • Quality assurance monitoring and independent quality surveillance of contraceptive manufacturers. • Management and maintenance of the central contraceptive procurement database (NEWVERN). The surcharge is a percentage of the total value of the commodities, adjusted annually based on actual charges. The surcharge value must be included in the funds transferred to CSL each year, and is charged to the Mission for each shipment made. The charge is ref lected in the Mission’s Statement of Contraceptive Account. To calculate FY2006 funding, add 5.5 percent surcharge to the total commodity value for new contraceptive shipments. Refer to the Contraceptive Product Catalog 2006 for USAID-supplied contraceptives and unit prices. 2 USAID Funding and Contraceptive Procurement Procedures Missions and Bureaus need to take the following actions for FY2006 field support funding: 1. Confirm funding levels. Review funding estimates for contraceptive procurement based on the last CPT. CSL may ask you to clarify any revisions. Funding estimates must include the cost of contraceptives, freight, and surcharge. The surcharge percentage for CY2006 and CY2007 shipments is 5.5 percent. 2. Consider current contraceptive account balance. Review your current contraceptive account balance before calculating funds needed for new contraceptive shipments. Look at the account balance after all shipments are sched uled to ship through the end of CY2007, and adjust your FY2006 funding as needed. 3. Make funds available for contraceptive procurement. Take the steps required to make funds available for central contraceptive procurement, either through the field support funding mechanism or through a MAARD (for funds obligated by the Mission). To enable CSL to plan central programming and procurement actions, advise CSL of the prospective funding level and when funds will be available. When funding is available, it is CSL’s responsibility to work with the Office of Procurement to complete the procurement process and accurately record the obligations and subsequent disbursement of funds. It is CSL’s responsibility to— • Record the level of funding provided and the cost of all shipments. • Ensure that all relevant regulations and policies are observed when making procurement decisions (for example, Brooke Amendment restrictions, funds account restrictions on eligible countries, etc.). • Contract for production and shipping services to ensure the timely and safe arrival of requested shipments. • Transmit a quarterly Statement of Contraceptive Account to controllers and population officers to report overall balances and transactions during the previous quarter. You may also view your Statement of Contraceptive Account online at deliver.jsi.com/newvern. • Provide reports that show attributions and expenditures to countries that receive shipments. • Maintain overall accounts for funds used to procure the services included under system costs—warehousing, quality assurance, and management information system (MIS) services. 3 USAID Contraceptive Procurement Guide 2006 Use of Funds Obligated at the Mission Level (MAARD Funds) To simplify procurement and accounting, the central contraceptive procurement system uses a pool of previously unobligated funds to fulfill contract obligations. However, funds obligated at the Mission level may be used for contraceptive procurement when the following conditions apply: • The originating results package completion date is at least 12 months after the date when CSL has access to the funds. • All the previously obligated funds designated for contraceptive procurement are available in one action. • U.S. Agency for International Development/Washington (USAID/W) is designated as the office authorized to pay vouchers against the purchase. • Contraceptive orders are transmitted separately from the funding action. • The authorized use of funds is consistent with their use in all centrally managed contraceptive contracts. The following language satisfies this condition: The Office of Population and Reproductive Health (PRH) is authorized to attribute these funds for the procurement of all major contraceptives and condoms for HIV/AIDS under the operating procedures of Central Contraceptive Procurement. Specific Mission requirements will be transmitted in a separate document. The Mission will pay the charges incurred by the use of these funds in contraceptive and condoms contracts, as indicated by PRH. PRH will advise the Mission regularly of the value of the shipments provided, the related charges against the funds provided by the Mission, and the unused funds balance available to the Mission for procurement requests. 4 USAID Funding and Contraceptive Procurement Procedures Commodity Fund (CF) and FY2006 Funding Condom availability and use in most countries is inadequate, especially for those most at risk. The Commodity Fund (CF) helps to fill this important gap. The CF received $27.2 million in FY 2005 to centrally fund condoms for HIV/AIDS and to ensure their expedited delivery to countries during CYs 2005 and 2006. The CF is intended to increase condom availability and use by making condoms for HIV prevention free of charge to Missions to expand access to HIV/AIDS condoms, according to CF resource availability and the program need, as indicated below. It is expected that these condoms will be additive to country programs and expand HIV/AIDS activities, and that Missions will not swap condom provision responsibilities with other donors such that availability and use remain unchanged. Missions with questions regarding male condoms should correspond directly with Bonita Blackburn (GH/PRH/CSL). Missions with questions concerning female condoms should correspond directly with Doris Anderson (GH/PRH/CSL) and Nancy Lowenthal (GH/OHA). Please note: However, The President's Emergency Plan for AIDS Relief (PEPFAR) Focus Countries are being required to include condoms for their HIV programs as an activity/budget line item in their country operational plans (COPs). Focus Countries will need to budget and pay for the condoms they need, and will not be eligible to obtain condoms free of charge from the CF; Focus Countries are expected to provide funds for condoms to USAID's centralized procurement mechanism (CCP; 936-3057). Non-Focus Countries will continue to be able to request condoms for free from the CF as in FY 2005. Both Focus and Non-Focus Countries should follow the same ordering procedures as in FY 2005. Mission annual needs for condoms change as programs launch, expand, focus, etc. To manage the total CF funding available as well as USAID condom production contracts to the maximum benefit of all Non-Focus Missions, it would help if Missions would advise Bonita Blackburn of any revisions to their best estimate of condom quantities needed by their programs in CY 2006. If a Mission believes that it is unable to obtain the total quantity of needed condoms via the CF, its own resources or those of other partners, please let us know. There may be some f lexibility on a country-by-country basis to assist in a limited way. Missions should not reduce orders due to funding constraints at this time. Please let us know what your program needs and what your constraints are. If a Mission, even a focus country, has insufficient CY level or funding constraints and limited options for obtaining needed condoms, please consult Bonita Blackburn (GH/PRH/CSL) at firstname.lastname@example.org. There may be some f lexibility on a county-by-country basis to assist in a limited way. Missions should not reduce orders based on funding constraints without first corresponding with Bonita Blackburn about program needs and possible assistance. 5 USAID Contraceptive Procurement Guide 2006 Ordering Contraceptives The completion and submission of a CPT does not, by itself, result in an order for contraceptives in USAID’s Central Contraceptive Procurement (CCP) system. The orders resulting from the CPTs are not processed until CSL receives your order email. Completed CPTs include a proposed shipping schedule for the commodities needed. After approving the CPTs, the Mission should check the current contraceptive account balance to determine the total additional funding needed. Funding should cover the value of all new shipments, as well as any shortfall for existing shipments. The Mission must send a contraceptive order e-mail to the country backstop at CSL. To order contraceptives, send an order to the attention of your country backstop at CSL, by email. If you don’t know the name of your country backstop, send the order to the CSL Division Chief, Mark Rilling. CSL will acknowledge receipt of your order within one week. A complete order contain(s) the following information: • Product being requested • Quantity being requested • Anticipated arrival date • Mode of shipment • Recipient information • Instructions about any deviations from standard shipping instructions See figure 2 for an example of a contraceptive order email attachment. Note: Submission of CPTs does not initiate order entry or shipping. The shipment ordering process does not begin until CSL receives the order by email. If a Mission or Bureau requires that you use cables for your orders, you must still send CSL an email copy of the order. Lead-time: Since most sea shipments take two to three months, and CSL needs time to process your order and assemble your commodities, try to order at least six months before the needed arrival date. We try to respond to shorter lead times, but you are more likely to receive what you need, when you need it, if we have more time. 6 USAID Funding and Contraceptive Procurement Procedures Figure 2. Sample Contraceptive Order Email Note: If you know that the information on file is correct, you may replace the specific shipping instructions with the following text: Use consignee, marking information, and document distribution list currently on file in NEWVERN. The cost summary table is optional. 7 USAID Contraceptive Procurement Guide 2006 Contraceptive Registration In countries with registration laws, each contraceptive ordered by a Mission must comply with the country’s regulations for the registration of imported contraceptives. Registration of a contraceptive must be approved before you send your order for a specific contraceptive. If an order email requests a contraceptive for the first time, CSL requires a statement from the Mission that the product is registered or that local laws do not require registration. Monthly Cables Orders are entered when CPTs and the accompanying order email are received and approved by CSL. After orders are entered, CSL will send regular monthly cables with information about pending contraceptive shipments for recipients in your country. The cables include sections listing— • Orders scheduled to ship in the next six months. • Shipments that have departed and are awaiting receipt confirmation. • Notification of shipments that shipped 12 months ago for which shipment status has not been obtained. • Shipments to your country charged to other agencies or cooperating agencies (CA). Unless the Mission responds otherwise, 12-month-old shipments will be marked received-in-full on the estimated receipt date. See figure 3 for a sample of a monthly cable. For a full explanation of the Tiahrt Amendment, please contact USAID or JSI/DELIVER. Find shipment and contraceptive account balance information at deliver.jsi.com/newvern. 8 USAID Funding and Contraceptive Procurement Procedures Figure 3. Sample Monthly Cable (continued on next page) 9 USAID Contraceptive Procurement Guide 2006 (continued on next page) 10 USAID Funding and Contraceptive Procurement Procedures (continued on next page) 11 USAID Contraceptive Procurement Guide 2006 12 USAID Funding and Contraceptive Procurement Procedures Acknowledging Receipt of Shipments For the final step in the ordering process, USAID/W sends a Receiving Report to Missions requesting confirmation of receipt of shipments (see figure 4). A Receiving Report is faxed or emailed to the Mission. If the fax or email does not transmit, the Receiving Report is sent by pouch and a copy of the document transmittal, way bill, packing list and commercial invoice is attached. The Receiving Report requests the Mission that placed the order verify the arrival of the shipment and return a copy of the memo by email, fax, or mail to John Snow, Inc., at the following address: Attn: NEWVERN JSI/DELIVER 1616 North Fort Myer Drive, 11th Floor Arlington, VA 22209 USA FAX: 703-528-7480 Email: email@example.com For CSL to track shipments and estimate lead times, you must return the completed Receiving Report information. After a shipment sails, a Receiving Report is faxed and mailed. Follow-up requests for receipt information are cabled to the Mission every month for 12 months. After one year, if there is no response to the Receiving Report and follow-up requests and the shipment status is not obtained (the shipment either arrived or was lost), the shipment is marked as received-in-full on the estimated receipt date, and the Mission can no longer make a claim for undelivered product. 13 USAID Contraceptive Procurement Guide 2006 Figure 4. Sample USAID Receiving Report 14 USAID Funding and Contraceptive Procurement Procedures II. CPT Guidance Overview You are required to prepare procurement tables (CPT) for every reproductive health program the Mission supports with contraceptive commodity donations. • To document and validate the need, prepare one table with annexes for each product the recipient program requests from USAID. • After you complete the CPTs, submit them to CSL to support the email order. • CPTs are maintained in the contraceptive commodities database for central procurement support (NEWVERN). The following section divides the CPT preparation process into 12 steps, and provides instruc tions and guidance on how to complete each step. Summary of Steps in Preparing CPTs To prepare a CPT, you must follow 12 steps—from data collection, to documentation of figures used in the CPTs, to proposing a supply schedule. 1. Determine which program(s) and contraceptive products will require CPTs. For each CPT— 2. Determine or estimate the quantity of stock on hand. 3. Estimate past, present, and future use or distribution to users. 4. Determine or estimate past and future losses, transfers out, and adjustments. 5. Identify the contraceptives received to date or scheduled to arrive (including transfers from other programs).* 6. Set desired end of year stock level. 7. Complete the CPT form with program data. Do the calculations. 8. Complete CPT annex, page 1. 9. Determine quantities needed in CY2006 and CY2007. 10. Propose new supply for CY2006 and CY2007. 11. Estimate quantity needed for CY2008. 12. Complete CPT annex, page 2. • To complete the first six steps, collect data from the program’s logistics management information system (LMIS) and forecast future activity. The steps are the same with or without a computer. * If you are preparing CPTs for USAID-supplied contraceptives, please contact the DELIVER project or USAID/GH/PRH/CSL in Washington, D.C., or go to deliver.jsi.com/newvern for a report of past, present, and future shipments to your country. 15 USAID Contraceptive Procurement Guide 2006 • To complete steps 7 and 8, record and calculate the information on paper in the CPT format, and document the sources and/or assumptions used to arrive at the data. If you use PipeLine software, the computer does the calculations. If you use your own spread sheet, use the formulas in this guide for the calculations. • To complete steps 9 through 12, prepare the procurement plan for ordering contracep tives, which provides important data to help CSL determine procurement contracts and budgets at the global level. This completes the CPT preparation task. Each step is important to the procurement process. To ensure timely receipt of shipments, follow each step carefully, then submit the completed CPTs to CSL with the contraceptive order. Collecting the Data Step 1. Determine which program(s) and contraceptive products will require CPTs. 1. First, decide on the program(s) that require CPTs (for example, the Ministry of Health, the local Family Planning Association, etc.). 2. Next, for each program, determine the products that require CPTs. One CPT is needed for each contraceptive product or brand that will be part of the program’s procurement plan. • In most cases, for logistics purposes, every different size, brand, or packaging of a method is a separate contraceptive product. • If the program receives equivalent, but not identical, contraceptive products from suppliers (for example, 52 mm non-colored, no logo condoms from USAID and 52 mm generic condoms from United Nations Population Fund, [UNFPA]), you can complete one CPT for all the equivalent products. In some cases, a program may receive many contraceptives that are used interchangeably (for example, different kinds of condoms). If the contra ceptives are prescribed and used interchangeably, prepare one combined CPT for all. You can increase logistics efficiency by managing equivalent products as one product. • If there is a good reason to forecast and track similar products separately at the program level, then show each contraceptive product on a separate CPT. Two good reasons would be— − The two products are used differently (for example, one is distributed through a community-based program while the other is distributed through fixed facilities), and the change in estimated use will be different for each products. —OR— − The program’s clients see them as separate products, therefore, the demand for the two products is different. Should you prepare separate CPTs for AIDS condoms? If an AIDS program uses a separate logistics system, the program manager could prepare a separate CPT (or CPTs, if more than one condom product is used) for the AIDS program. In an integrated program where demand is stable for AIDS prevention and family planning condoms, prepare a single CPT for each product, including both family planning and AIDS requirements. You do not need to differentiate between sexu ally transmitted infection (STI) prevention use and family planning use. 16 USAID Funding and Contraceptive Procurement ProceduresCPT Guidance Step 2. Determine or estimate the quantity of stock on hand. Stock on hand data should include stock from all levels of the delivery system. The most reliable source of data is an annual physical inventory conducted at all levels of the system. Another good source is an LMIS that collects inventory data from the facilities at all levels, as part of periodic reporting. If you cannot obtain data from lower levels of the delivery system, use stock on hand data from the lowest level for which reliable data is available. It is not desirable to use stock on hand at the central level only. If only central- level stock data is available, it is important to regularly monitor supplies at lower facilities to minimize shortages and surpluses. To calculate Beginning of Year Stock during the year, use the following example: Physical inventory on June 1 shows a count of 350,000 +350,000 30,000 issued monthly, January through May (30,000 × 5) +150,000 Two deliveries of 50,000 each received since January 1 (2 × 50,000= 100,000) -100,000 Beginning of year stock (BOYS) on January 1 =400,000 If CPTs were prepared within the past two years, verify the basis for the Beginning of Year Stock 2004 in the most recent CPT. Confirm that it is accurate or correct it with better data, if available. If an earlier estimate of Beginning of Year Stock 2004 is not available, estimate the current figure by using all stock level data available (for example, physical inventories, stock cards, LMIS reports). Subtract any receipts since 01/01/2004 from the current estimate of stock on hand, and add estimated dispensed quantities since 01/01/2004. Crosscheck this estimate with warehouse records and program staff (see figure above). Step 3. Estimate past, present, and future use or distribution to users. For the two historical years of the CPT, CY2004 and CY2005, use the most reliable data available from the lowest level possible in the distribution system to determine use, sales, and/or distribution. • Ideally, use data on the quantities of contraceptives that were actually dispensed to clients not the quantities of contraceptives that were issued from central or regional warehouses to lower-level warehouses or from lower-level warehouses to clinics. • If timely, accurate dispensed-to-user data are not available or cannot be obtained, use issues data from the lowest level considered reliable. • When using issues data to estimate dispensed-to-user quantities, do not double-count issues that represent the same product. For example, condoms issued from the central warehouse to a regional warehouse and from the regional warehouse to a clinic are the same. Count the condoms once, not twice. Base your future year use, sales, or distribution estimates on historical trends in contraceptive distribution (for example, how much has been dispensed to clients during the past few years) and on projections for program expansion or change. When you estimate future year consumption, consider the impact if you plan to increase the number of reproductive health clinics or trained service providers, change the method mix, or modify the reproductive health service delivery strategy. 17 USAID Contraceptive Procurement Guide 2006 If the logistics data are not reliable, check your logistics-based forecast by preparing forecasts using demographic and prevalence data or service statistics. • To forecast based on demographic and prevalence data, you need a recent national preva lence survey for your country that indicates how much prevalence is attributed to the programs for which you are preparing CPTs. • To prepare a forecast based on service statistics, the programs for which you are preparing CPTs should report client visits (not users) and have norms for the quantities of contracep tives dispensed at each visit. After you prepare forecasts using the various available data, compare the forecasts based on the strengths and weaknesses of each data source before you finalize your estimate. Step 4. Determine or estimate past and future losses, transfers out, and adjustments. Note: Promptly remove from the distribution system and destroy any contraceptives that have expired or are unusable because of damage. Follow local laws and any applicable donor guidelines on contraceptive disposal. The best information sources on past and present losses or transfers are the total or sample physi cal inventories, stock cards, or logistics information system records that provide data by manu facture/expiry date. These records should provide data on contraceptives that did or will expire and contraceptives that are transferred to or from other programs. • If large quantities of stock are due to expire, try to move excess stock to other programs where they can be used before expiry. • If you transfer stocks, focus on other in-country programs that will forecast supply shortages in future years. When considerable shelf life remains on an overstocked product, and the quality of the product has not been compro mised, it may be possible to transfer it to another country in time for use. • Remember, the donor of the commodi ties must approve any transfer of products from one country to an other before the transfers are initi ated. When you consider an interna tional transfer of contraceptives sup plied by USAID, please include CSL during the planning stage. • If you have any data on amounts of contraceptives usually damaged or lost in transit or storage at the peripheral levels of the logistics system, include these amounts as probable future losses in the CPT. A program conducts an annual physical inventory in January. In January 2004, the inventory count showed 1,500,000 condoms. +1,500,000 During 2004, shipments totaling 1,400,000 condoms were received. +1,400,000 During 2004, 1,000,000 condoms were distributed to users. –1,000,000 2004 end of year stock should be— 1,900,000 In January 2005, the inventory count showed 1,800,000 condoms. –1,800,000 Amount of adjustment. =100,000 The actual inventory is 100,000 less than expected. An adjustment of –100,000 is made in 2004 to calculate the reported 2005 beginning of year stock (1,900,000–100,000=1,800,000.) 18 USAID Funding and Contraceptive Procurement ProceduresCPT Guidance • Note transfers of contraceptives out of the program and the reasons for those transfers separately from losses or expiry. Transfers are usually beneficial; they help maintain adequate stock levels throughout the country by moving contraceptives to programs that need them most. • Occasionally, you may need to record an adjustment in a CPT. An adjustment is a subtrac tion from or an addition to inventory. While the adjustment balances the beginning of year stock for the following year, it represents an error in consumption or stock level data or unknown/unreported losses and requires some analysis and explanation. • Notify the program manager, and document all adjustments in the CPT annex. Step 5. Identify the contraceptives received to date or scheduled to arrive (including transfers from other programs). Identify all shipments received or scheduled to be received from all sources including local suppliers, international donors, and nongovernmental organizations (NGO) from 2004 through 2008. Include any transfers received or scheduled to be received from other programs. If the reproductive health program has a firm commitment from a local supplier or international donor to receive a certain quantity in a future year, even though a specific shipping schedule does not exist, count that quantity as well. However, do not count any quantity from any supplier unless there is a firm commitment. If the reproductive health program does not have records of past and future shipments, local donor or NGO representatives may be able to provide records for the contraceptives they supply. Step 6. Set desired end of year stock level. Set the desired end of year stock level high enough to ensure continuous availability of contracep tives at all program levels, but not so high that they routinely expire and add costs for manag ing and maintaining excess supplies. • When you set the program’s desired end of year stock level, determine the minimum and maximum desired stock levels at each level of the pipeline within the country. The desired end of year stock level should be between the sums of the minimum and maximum levels. Storage capacity, normal lead time for order ing and receiving the contraceptives, potential Months delays in delivery, and other issues may need to be considered when setting minimum and Max Min maximum stock levels at the service delivery Central warehouse 7 3 and storage facilities. District level 2 1 • To determine the desired end of year stock level: Service delivery Level 3 2 ♦ Add the maximum number of months of supply to be maintained at each level of the Total 12 6 delivery system and the minimum months of supply to be maintained at each level of Average stock (12 + 6)/2 = 9 the delivery system. Desired end of year stock ≥≥≥≥≥9 and ≤≤≤≤≤12 ♦ Divide this by two to get the average stock level in months. 19 USAID Contraceptive Procurement Guide 2006 ♦ Choose a desired end of year stock level that is equal to or greater than the average stock level in months but not greater than the total maximum months of stock. The desired end of year stock level should generally not exceed twelve months because of potential problems with contraceptive expiry. A program should never run short of contracep tives. Neither should it have to manage excess stocks that would waste resources and risk expiry. A long pipeline, indicated by a desired end of year stock longer than twelve months, increases the risk that contraceptives will expire before they can be distributed. Completing the 2006 Procurement Table (CPT) Use the CPT forms to record the basic data needed for CPT calculations, and to determine the quantities required and the supply shortfall. When you complete the CPT, remember to com plete the annex. The following pages provide detailed instructions on how to complete a CPT form by hand. Please refer to the form when you review these instructions. Step 7. Complete the CPT form with program data. Do the calculations. Complete the Country, Program, Contraceptive, Prepared by, and Prepared date lines on each CPT. All quantities should be expressed in units. Complete as follows: Item 1 Beginning of Year Stock (BOYS) The Beginning of Year Stock in CY2004 and CY2005 should equal the actual amount in inven tory at all program levels, or, if actual data are not available, the program manager’s best estimate. The Beginning of Year Stock figures for the three future years of the CPT are estimates. They are based on the following calculations: Beginning of Year Stock 2006 = Item 4, End of Year Stock 2005 Beginning of Year Stock, 2007 = Item 4, End of Year Stock 2006 + Item 7, Quantity Proposed 2006 Beginning of Year Stock 2008 = Item 4, End of Year Stock 2007 + Item 7, Quantity Proposed 2007 20 USAID Funding and Contraceptive Procurement ProceduresCPT Guidance (Do not complete shaded cells) 21 USAID Contraceptive Procurement Guide 2006 Item 2 Received/Expected Item 2a For CY2004, CY2005, and CY2006, record the quantity of the contraceptive actu ally received from all suppliers. • If a shipment has arrived in-country but has not been cleared from port, do not include it in item 2a; instead, include the shipment in item 2b. • For each shipment in item 2a, include the following in the annex: supplier, quantity, receipt date, and shipment ID number. Item 2b Complete this item for CY2005 through CY2008 to include shipments from all suppliers that are ordered, confirmed, and expected to arrive but have not been received by the program when the CPT is completed. For each shipment in item 2b, include the following in the annex: supplier, quantity, expected receipt date, and ship ment ID number. Item 2c Record any stock that was transferred in from a different program and any adjust ment quantity required if the end of year stock is lower than the beginning of year stock for the following year. Item 3 Estimated Dispensed Item 3a Enter actual figures for contraceptive use/sales/distribution to clients for CY2004 and CY2005, with estimated/forecast figures for CY2006 through CY2008. Item 3b Record any stock that has been or will be removed from the program’s inventory for any reason other than distribution to clients (for example, stock that was damaged in a f lood). • Item 3b should include any stock that expired or will not be usable, including any stock expected to expire before it can be used. Item 3c If the calculated end of year stock is higher than the beginning of year stock for the following year, record an adjustment to balance the beginning of year stock for the following year. Item 4 End of Year Stock (EOYS) This item is a calculation. Item 1 + Item 2 (a, b, and c) - Item 3 (a, b, and c) = Item 4 22 USAID Funding and Contraceptive Procurement ProceduresCPT Guidance Item 5 Desired EOYS: Fill in the months field with the desired end of year stock (EOYS) in months, which is determined in step 6. The Desired EOYS for CY2006 and CY2007 is equal to the Desired EOYS in months multiplied by the average monthly con sumption for the following year, plus losses or transfers antici pated for the following year. To calculate Desired End of Year Stock, use the following example: Desired EOYS in months: 9 Item 3a Dispensed to Users 2007: 12,000 2008: 13,200 Item 3b Losses/Transfers Out 2007: 200 2008: 50 Calculate DEOYS for 2006: 9 x (CY2007 Item 3a/12) + CY2007 Item 3b 9 x 12,000/12 + 200 = 9 x 1000 + 200 = 9,200 Calculate DEOYS for 2007: 9 x (CY2008 Item 3a/12 )+ CY2008 Item 3b 9 x 13,200/12 + 50 = 9 x 1100 +50 = 9,950 Calculate DEOYS for 2008: Repeat value for 2007 in 2008= 9,950 For CY2006 Desired EOYS: Desired EOYS in months × (CY2007 Item 3a /12) + CY2007 Item3b For CY2007 Desired EOYS: Desired EOYS in months × (CY2008 Item 3a /12) + CY2008 Item 3b The Desired EOYS for CY2008 is equal to the Desired EOYS 2007. For CY2008 Desired EOYS: Desired EOYS in months × (CY2008 Item 3a /12) Item 6 Surplus (+) or Quantity Needed (-) • For CY2006, CY2007, and CY2008, subtract the Desired End of Year Stock in item 5 from the End of Year Stock in item 4. Enter the result in item 6. • If the End of Year Stock in item 4 is less than the Desired End of Year Stock in item 5, then item 6 is negative and represents a Quantity Needed. • The program or a donor is required to provide additional stock to ensure that Estimated Dispensed (item 3) and Desired End of Year Stock (item 5) levels can be met. Note the quan tity as Quantity Proposed in item 7. • If the End of Year Stock in item 4 is greater than the Desired End of Year Stock in item 5, then item 6 represents a surplus. In this case, new supplies should not be planned for the specified year. If the overstock is significant, you may want to negotiate with the supplier to cancel, delay, or reduce an order that has not shipped. Item 7 Quantity Proposed • Item 7 should show the total quantity of new supplies that you will propose to suppliers. • If enough shipments are proposed (item 7) to meet the Quantity Needed (item 6), there is no supply shortfall. Leave item 8 blank. 23 USAID Contraceptive Procurement Guide 2006 Item 8 Surplus (+) or Shortfall ( -) The supply shortfall is the amount below the desired end of year stock after all possible sup plies are proposed. Add item 6 and item 7, and enter the result in item 8. If the quantity needed is greater than the quantity proposed, then item 8 is a negative number— Item 8 = Item 6 + Item 7 If the supply shortfall identified in item 8 threatens contraceptive security, notify donors, program managers and CSL. Step 8. Complete CPT annex, page 1. The CPT annex, page 1, provides details and explanations of the figures shown on the CPT. Each CPT submitted must include this information. The CPT annex form offers limited space for recording this information. If more space is needed, include a memo with the CPT. Complete the Country, Program, Contraceptive, Prepared by, and Prepared date lines on each CPT. Documentation of CPT Figures Item 1 Beginning of Year Stock • List the facilities visited. • Clearly explain what inventory data, from which levels, are included in the totals; how current and accurate the data appear to be; and what methodology was used (if any) to adjust for missing data. Item 2 Received/Expected • List all contraceptives received or expected (items 2a and 2b). State the supplier, quantity, receipt date (or estimated/scheduled receipt date), and any identifying information about the shipment (for example, NEWVERN ID, purchase order number). For transfers into the program, note the origin of the transfer in the supplier column. Item 3 Estimated Dispensed • Clearly state the assumptions and methodology used in calculating the figures, as well as data sources used (for example, service statistics, logistics data, prevalence data). Loss/Disposal: If any loss or disposal is noted in the CPT, specify the source of these data. Transfers/Adjustments: If transfers or adjustments are noted in the CPT, specify the destination of transfers out of the program or the reason for the adjustment. 24 USAID Funding and Contraceptive Procurement ProceduresCPT Guidance 25 USAID Contraceptive Procurement Guide 2006 Requirements Estimation Step 9. Determine quantities needed in CY2006 and CY2007. If there is a Quantity Needed in CY2006, CY2007, and/or CY2008 (line 6 of the CPT), propose and order additional contraceptives to maintain an adequately stocked pipeline. If there is no Quantity Needed in CY2006 and CY2007, skip step 10. Step 10. Propose new supply for CY2006 and CY2007. A proposed shipping schedule includes any shipment that host country suppliers and donors are to be asked for and expected to deliver to the program in CY2006 and CY2007. Proposed ship ments represent commitments above and beyond the shipments included in item 2 (Received/ Expected). • Determining an appropriate shipping schedule for the Quantity Proposed (6) depends on general considerations: − Total length of the contraceptive pipeline. − Seasonal variations. − Storage capacity at all levels. − Time required for clearance procedures. − Any supplier-specific or port-specific constraints on shipment size or frequency. • In general, a program manager must balance the time and money required to clear shipments with the cost of maintaining stock in the warehouse. • The proposed shipping schedule suggests the ideal times and quantities for products to arrive. • If you cannot identify enough proposed new supply to meet the Quantity Needed, at best, the program risks having a smaller security buffer in its contraceptive pipeline than is desirable; at worst, the program risks stocking out. Inform senior program managers and appropriate donor representatives about all possible shortfalls as soon as possible. Step 11. Estimate quantity needed for CY2008. USAID procedures do not require you to order shipments for CY2008, but you must determine the quantity each donor or supplier is expected to supply to meet the Quantity Proposed for CY2008. In your planning with donors or suppliers, consider the following: • If you know a supplier is limited in the amount of a product they can supply in CY2008, determine the amount (for example, UNFPA, 50,000). • If the program is in a “phase over” plan, and the responsibility for meeting the required quantity will gradually shift from one donor or supplier to another, determine the quantity each will provide. 26 USAID Funding and Contraceptive Procurement ProceduresCPT Guidance Step 12. Complete CPT annex, page 2. Complete the Country, Program, Contraceptive, Prepared by, and Prepared date lines on each CPT. Fill in the tables. Item 1 Cancel the following previously ordered shipments. If shipments should be canceled (see step 5), record those shipments in the table. Transfer this information to the order email. Note: A change in consumption data may show stock at the end of the year above the desired stock level. To avoid over stocking, you may be able to delay or cancel a scheduled shipment. It is important to include in the order e-mail any existing shipments that need to be delayed or canceled. Item 2 Change the following previously ordered shipments. If shipment quantity or ship dates should be changed (see step 5), record those shipments in the table. Transfer this information to the order email. Item 3 Order the following proposed shipments. If additional shipments are required to meet any quantity needed in CY2006 and CY2007 (see step 10), record those shipments in the table. Transfer this information to the order email. Item 4 Enter expected amounts to be supplied in CY2008. Enter projected quantities by supplier (see step 11). 27 USAID Contraceptive Procurement Guide 2006 28
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