Developing NBA contract
management framework and
approach for commercial blood
product contracts
NBA commercial contracts
Four groups of commercial contracts (14 contracts in total):
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CAFA
Imported Plasma and Recombinant Products (IPRP)
Imported IVIg
Red Cell Diagnostic Products (RCDP)
Total annual value $485m in 2011-12
Prompts for improvement
ANAO 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
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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 contracts
In 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