Following allegations of irregularities for the last few years and the recent Kerala High Court order to cancel the Rs 100 crore odd drug purchases for the government hospitals, the Kerala Government has come out with a 'draft policy for procurement of drugs and supplies' to be followed in future.
Pharmabiz learnt that the highlight of the policy was a strict time schedule for purchases every year, with various deadlines like registration and assessment in the list of pre-qualification by October 31, inviting tenders before November 15, receipt of tenders before 1st January, opening of tenders before 3rd January, obtaining test results before 18th February, negotiation period up to 25,26, and 27th of February and publication of final list on 1st of March every year.
Unlike the present state budgetary allocation of a lump sum amount to the health department, the policy recommends to earmark minimum Rs 100 crore in the annual state budget specifically for drug and supplies purchases, with provisions to advance allocation to the CPC without any restrictions, on a quarterly basis during the first of April, July, October and January. The move is to ensure that the suppliers are sure of timely payment, which would in turn result in quoting competitive prices, as presently the suppliers add on 18-25 per cent of the cost towards the interest due to late payment.
Estimated price for drugs will be determined by the price quoted by the manufacturers periodically and the prices notified by NPPA. Further, the policy has suggested to follow only three types of bidding, either rate contract, limited tender or single tender. It also specifies elaborately on ways of publicizing the tenders, bidding period, various bid documents required etc.
Technical evaluation of the bids will be done by a Bid Evaluation Committee consisting of DHS / DME as chairman, drugs controller, director of Insurance Medical Service and additional secretary (Finance), additional / joint secretary (SPD) as members and finance officer of the DHS / DME as the convener. The committee has been directed to give 15 per cent price preference for domestic Small Scale Industrial (SSI) units, and 10 per cent price preference to state and Central PSUs in drug purchases.
A five-member Technical Specifications Committee (TSC) consisting of the drugs controller as its chairman will draft the technical specifications from time to time. The committee will ensure that the technical specifications drawn up were not restrictive and brand specifications were not included, the products were of latest make and should be suitable for Indian conditions etc. The committee will review the specifications at least once in a year.
The policy also gives elaborate guidelines on general technical specifications, schedule of requirements, delivery period, inspection and tests, terms of payment, performance, insurance, warranty, and setting up of a procurement cell within the health department.
The Procurement Cell, intended to infuse professionalism and speedy procurement, will consist of functional specialists in the field of Procurement, Pharmacy, Finance, Bio-Medical Engineering and Computer Science.
Meanwhile, in another development today, the Kerala health minister K K Ramachandran Master said a high level department level enquiry will be ordered in to the drug purchases made by the Central Purchase Committee of the health department in the last three years.