Assessment of the Practices and Challenges of Pharmaceuticals Framework Contract Agreement Procurement: The Case of Ethiopian Pharmaceutical Supply Services
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Date
2024-06
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Addis Ababa University
Abstract
Public procurement is crucial for financial management and service delivery, especially in countries where acquiring pharmaceuticals through public procurement significantly impacts public health outcomes. A Framework Contract Agreement (FCA) is a long-term contract between a buyer and supplier that sets out terms for delivering goods or services over time, aiming to enhance efficiency and achieve value-for-money gains. Despite the Ethiopian Pharmaceuticals Supply Service (EPSS) adopting FCAs since 2017, there is a lack of empirical data on their implementation and their impact on clinical practices. This study aims to address this gap by examining current operational procedures, identifying challenges, and proposing solutions. Using a mixed-methods approach, it analyzes procurement records quantitatively and conducts qualitative interviews with stakeholders. Key findings indicate that while FCAs have enhanced procurement processes and supplier relationships, challenges persist, including price volatility, limited supplier competition, and regulatory ambiguities. Addressing these issues is crucial to optimizing procurement efficiency and ensuring a reliable supply of high-quality pharmaceuticals. The study's recommendations propose strategies to strengthen the sustainability and performance of FCA procurement across substance supply systems in Ethiopia, thereby safeguarding public health benefits and supporting healthcare resources throughout the country.
Key words; practice of FCA , Challenge of FCA , supplier selection , Supplier relationship management , Contract management