Government Preferential & Procurement Procedures (Tender & Bidding)

Over the past decade, the procurement of medicines has become increasingly decentralized. Budget Management Centers (BMCs) purchase directly from the domestic private sector. The MOH has tried to curb this practice by introducing administrative guidelines that require BMCs to obtain a “non-availability certificate” from the CMS prior to purchasing. In practice, this guidance is ignored. In 2003, a survey conducted showed that more than 50 percent of medicines came from the private sector. The main reasons cited were lower prices and better quality, availability, and packaging.

The CMS is still an important procurer and distributor of select public health commodities. Although nearly 50–70 percent of public sector procurement comes through the private sector, CMS plays a critical role in the procurement, warehousing, and distribution of select public health commodities (such as contraceptives and vaccines). Most donors rely on CMS to serve as the first in-bound warehouse for storing and breaking bulk orders into smaller orders for downstream distribution to facilities. In addition, CMS continues to provide at least 30 percent of the country’s needs. However, to date, supply chain functions operated by CMS have been fragmented; a strategic approach is lacking. The policy requires direct delivery by CMS to regional stores. However, a study on the cost of logistics found that most regional stores used their own transportation to get supplies[1].

[1] Karima Saleh, The Health Sector in Ghana: A Comprehensive Assessment, The World Bank, 2013, pp.71-72.