The document provides information about the procurement process for medical supplies and equipment at hospitals. It discusses the different types of supplies that must be procured, including medical equipment, disposable supplies, laboratory chemicals and diagnostics, vaccines, and medical gases. It also outlines the national hospital formulary that determines which medicines are procured according to the essential medicines list from the WHO. The document discusses the various methods used for procurement, including open competitive bidding, request for quotations, direct contracting and petty purchases, in accordance with the relevant rules and regulations.

2. HOSPITAL PROCUREMENT .
MEDICAL EQUIPMENT,
OTHER SUPPLIES,
MEDICAL STORES,
VACCINES AND SERA,
LABORATORY KITS ETC.
BY.DR.MOHAMMAD RIYAZ BHATTI.
PHARM;D
HEAD PHARMACY SERVICES,
JINNAH POSTGRADUATE MEDICAL CENTRE,
KARACHI.

3. Hospital Procurement

4. CONTENTS.
 HOSPITAL MEDICAL SUPPLIES PROCUREMENT
 NATIONAL HOSPITAL FORMULARY.
 SURGICAL AND DISPOSEABLE ARTCLES.
 LABORATORY CHEMICALS AND DIAGNOSTICS.
 X. RAY FILMS.
 SURGICAL INSTRUMENTS
 MEDICAL GASES
 PROCUREMENT RULES
 PROCUREMENT METHODS
 PROCUREMENT PROCESS
 PREQUALIFTCATION AND DISQUALIFICATION OF
SUPPLIERS.
 BLACKLISTING OF SUPPLIERS.
 RISK PURCHASE.

5. HOSPITAL MEDICAL
SUPPLIES
PROCUREMENT
SURGICAL AND
DISPOSEABLE
ARTCLES.
DRUGS AND
MEDICINES
SURGICAL
INSTRUMENTS
LABORATORY
REAGEMTS. CHEMICALS GLASS WARE
DIAGNOSTIC
KITS.
LABORATORY
EQUIPMENT X-RAY FILMS
BIOMEDICAL EQUIPMENT. MEDICAL GASES

6. NATIONAL HOSPITAL
FORMULARY.
Medicines are procured in public hospitals
according the,
NATIONAL HOSPITAL FORMULARY.
National hospital formulary is based on ESSENTIAL
MEDICINE LISIT introduced by W. H. O.

7. NATIONAL HOSPITAL FORMULARY
ANAESTHETICS
General
anaesthetics and
oxygen
Local anaesthetics
ANALGESICS, ANTIPYRETICS,
NON-STEROIDAL ANTI-
INFLAMMATORY
MEDICINES (NSAIMs).
MEDICINES USED TO TREAT GOUT
AND DISEASE MODIFYING
AGENTS IN RHEUMATOID
DISORDERS (DMARDs
Opioid
analgesics
ANTIALLERGICS
AND MEDICINES
USED IN
ANAPHYLAXIS
ANTIDOTES AND
OTHER SUBSTANCES
USED IN POISONINGS ANTICONVULSAN
TS/ANTIEPILEPTIC
SANTI-
INFECTIVE
MEDICINES Anthelminthic
s
Antibacterial
s
Antileprosy
medicines
Antituberculosis
medicines

8. Antifungal medicines Antiviral
medicines
Antiretroviral
Nucleoside/Nucleotide
reverse transcriptase
inhibitors
Protease inhibitors
SOME MAJOR GROUPS OF MEDICINES FROM NATIONAL HOSPITAL
FPOMULARY ARE SHOWN.(Pl. refer formulary with supporting
documents)

9. SURGICAL AND DISPOSEABLE ARTCLES.
Reusable surgical instruments.
several type of shears, surgical
cutters and many
other medical devices.
made of hard metals such as
stainless steel or any other high-
grade metal and can be used
over the months and years.
The second and most important type
of instruments is disposable surgical
equipment.
Example of disposable surgical
equipment is stitch cutter, surgical
blades, surgical suture, surgical
suture needle, Ethicon sutures, vicryl
mesh, disposable syringes, blood
transfusion set and forceps.
These instruments help in prevention
of infections and many related
diseases but they are also cheaper in
cost as well.

11. Equipment
Anaesthesia machine
Autoclave/Sterilizer - Centrifuge
Defibrillator / Monitors Dermatome
Diagnostics ultrasound with probe
EKG recorder (dual) Electrosurgical unit
Endoscopies equipment Exam light
Fetal Doppler Fetal monitor
Humidifier Infant warmers
Infant incubator .Lab equipment and
analyzers

12. Hospitals and medical facilities
have numerous associated
laboratory operations. These in-
house labs perform a variety of
functions that commonly include
but are not limited to research,
chemistry, haematology, pathology,
histology, microbiology and
immunodiagnostics.
Laboratory Chemicals and
diagnostics.

13. W. C. Roentgen
X.RAY

14. STORAGE AND HANDLING OF MEDICAL GASES
 Cylinder Color Coding
United States Canada
 Oxygen Green White
 Carbon Dioxide Gray Gray
 Nitrous Oxide Blue Blue
 Cyclopropane Orange Orange
 Helium Brown Brown
 Ethylene Red Red
 CO2/O2 Gray/Green Gray/Green
 Helium/O2 Brown/Green Brown/Green
 Nitrogen Black Black
 Air Yellow Yellow
 Nitrogen/O2 Black/Green Black/Green

15. STORAGE AND HANDLING OF MEDICAL GASES
 Medical Gases are stored in one of two ways:
 Portable high-pressure cylinders
 Large bulk reservoirs

16. 16
Introduction to Public
Procurement
PPRA RULES.

17. Public procurement is
broadly defined as the
purchasing, hiring or
obtaining by any other
contractual means of goods,
construction works and
services by the public sector.
Public procurement is alternatively
defined as the purchase of
commodities and contracting of
construction works and services if
such acquisition is effected with
resources from
state budgets, local authority
budgets,
state foundation funds, domestic
loans or foreign loans guaranteed
by the state,
foreign aid as well as revenue
received from the economic activity
of state.
Public procurement thus
means procurement by a
procuring entity using
public funds
“Goods” means articles and object of
every kind and description including raw
materials, drugs and medicines,
products, equipment, machinery, spares
and commodities in any form, including
solid, liquid and gaseous form, and
includes services identical to
installation,transport, maintenance and
similar obligations related to the supply
of goods, if the value of these services
does not exceed the value of such goods;
“Public Procurement” means
acquisition of goods, services
or construction of any works
financed wholly or partly out
of the public fund, including
projects of Public Private
Partnership, unless excluded
otherwise by Government;

18. FORMATE FOR
BUDGET
ORDER/NEW
ITEM
STATEMENT.
1.Development Schemes.
2.Non development budget.(Routine
budget.)
Activities of development scheme/Project.
Preparation of P.C I /P.C/II
Approval of P.C i/P.Cii from competent forum
Issuance of administration approval
Technical sanction of detailed estimate
Placement of funds with executing agency
Site possession or land acquisition
ACTVITIES PRIOR TO
PROCUREMENT

19. PROCUREMENT PLANNING
Procurement Plan
(1) Mandatory Provision of Procurement Plan - All
procuring agencies shall devise a mechanism for planning
in detail for all proposed procurements, determining the
requirement of the procuring agency, within its available
resources, and prepare an annual or a longer term rolling
plan, detailing the procurement methods applicable for
specific procurements;

20. Annual
Pocurement
Plan
On receiving the New item statement.
Which shows the object code, commitment item
,budget estimate.
The planning and development cell initiate
working on annual procurement plan.
The annual plan consist of the schedule of
procurement plan envisaged for the financial year.
It consist of following.
Preparation of bidding documents and approval from competent
authority through procurement committee.
TENDER SCHEDULE.
Date of selling of document.
Closing date of tender.
Tender opening date.
Technical bid
evaluation date.
Commercial bid
opening date

21. Specifications shall allow the widest possible competition
and shall not favour any single contractor or supplier nor
put others at a disadvantage. Specifications shall be
generic and shall not include references to brand names,
model numbers, catalogue numbers or similar
classifications. However, if the procuring agency is
convinced that the use of a reference to a brand name or a
catalogue number is essential to complete an otherwise
incomplete specification, such use or reference shall be
qualified with the words “or equivalent”.
Technical Specifications

22. Principles of procurements.-
Procuring agencies, while engaging in procurements, shall
ensure that the procurements are conducted in a fair and
transparent manner, the object of procurement brings value
for money to the agency and the procurement process is
efficient and economical.
“value for money”
Means best returns for each rupee spent in
terms of quality, timeliness, reliability, after
sales service, up-grade ability, price, source,
and the combination of whole-life cost and
quality to meet the procuring agency’s
requirements.

23. METHODS OF PROCUREMENT
Principal method of procurement.-
Save as otherwise provided hereinafter, the procuring
agencies shall use open competitive bidding as the principal
method of procurement for the procurement of goods,
services and works.
1.Open competitive bidding.-
The procuring agencies shall engage in open
competitive bidding if the cost of the object to be
procured is more than the prescribed financial
limit.

24. Alternative methods of procurements.-
, A procuring agency may utilize the
following alternative methods of
procurement of goods, services and
works.
2.petty purchases.-
Procuring agencies may provide for petty purchases
where the object of the procurement is below the
financial limit of twenty forty thousand rupees. Such
procurement shall be exempt from the requirements
of bidding or quotation of prices:
Provided that the procuring agencies shall ensure that
procurement of petty purchases is in conformity with
the principles of procurement.

25. 3.Request for quotations.-
A procuring agency shall engage in this method of
procurement only if the following conditions exist, namely:-
(i)the cost of object of procurement is below the prescribed
limit of one hundred thousand rupees:
(Provided that the respective Boards of Autonomous bodies
are authorized to fix an appropriate limit for request for
quotations method of procurement subject to a maximum of
rupees five hundred thousand which will become financial
limit)
(ii)the object of the procurement has standard
specifications;
(iii)minimum of three quotations have been obtained; and
the object of the procurement is purchased from the
supplier offering the lowest price.

26. 4.Direct contracting
A procuring agency shall only engage in direct contracting if the
following conditions exist, namely:-
(i)the procurement concerns the acquisition of spare parts or
supplementary services from original manufacturer or supplier:
Provided that the same are not available from alternative sources;
(ii)only one manufacturer or supplier exists for the required
procurement:
Provided that the procuring agencies shall specify the appropriate for
a, which may authorize procurement of proprietary object after due
diligence; and
(iii)where a change of supplier would oblige the procuring agency to
acquire material having different technical specifications or
characteristics and would result in incompatibility or disproportionate
technical difficulties in operation and maintenance:
Provided that the contract or contracts do not exceed three years in
duration;

27. PROCUREMENT CYCLE
Planning/Designing
specifications
Solicitation of
Bids
Bids opening
and Evaluation
Contract
Award
Grievance
Redressal
Contract
Administration
Payments
Pre-qualification

29. Procurement Process.
1.Preparation and approval of N I T-----/E o i/prequalification notice from
competent authority by P.C.
2.Publication /Hoisting
3.Issuance of Prequalification/Bidding documents
4.short listing in case of Prequalification
5.Issueance of Bidding documents to short listed or interested Bidders.
6.Opening Evaluation Bids and preparing B E R.
7.Hoisting of Bid Evaluation report.
8.Issuance of letter of Acceptance.
9.Signing Contact Agreement.
10.Publication of Contract Award.

30. PRE-QUALIFICATION AND DIS-QUALIFICATION
OF SUPPLIERS,AND CONTRACTORS
 Pre-qualification of Suppliers and Contractors
 (1) A procuring agency, may engage in pre-qualification
of bidders only in the following cases:
 (a) in case of contracts for large and complex works
and services related to, in which there are high costs of
preparing detailed bids;
 (b) in the contracts to be let under turnkey, design and
build, or management contract;
 (c) in case of expensive and technically complex
equipment and works with a view to ensuring that
invitations to bid are extended only to those who have
adequate capabilities, competence and resources.

31.  Pre-qualification of bidders shall be based entirely upon the
capability,competence and resources of the bidders relevant to
performance in the particular assignment, taking into account
the following:
 (a) experience and past performance on similar assignments;
 (b) capabilities with respect to construction or manufacturing
facilities,
 (c) financial capability;
 (d) capabilities with respect to personnel, equipment, and plant;
 (e) appropriate managerial capability; and
 (f) any other factor that is relevant to the capability, competence
and resources required for accomplishment of the assignment;
 Provided that pre-qualification may be carried out only for
specific procurement contract and shall be applicable only to
that particular assignment.

32. PROCESS OF PRE-QUALIFICATION -
 (1) To prequalify for bidding on a specific contract or package:
 (a) invitation to prequalify on specific contract or package shall
be advertised and notified as per Rules 17 and 18.
 (b) procuring agency shall provide a set of pre-qualification
documents containing scope of contract, a clear set of
requirements for qualification and evaluation criteria to any
supplier or contractor,subject to payment of price, if any, which
shall not exceed the limit, as prescribed in these Rules, and
shall indicate the time and place where the documents can be
obtained.
 Alternatively, if the procuring agency does not wish to issue
pre-qualification documents, it shall include the scope of work
and a clear set of requirements for pre-qualification and the
evaluation criteria in the notice for pre-qualification.

33.  (c) all applicants found capable of carrying out
the assignments in accordance with the
approved prequalification criteria shall be
prequalified and invited to submit bids.
 (d) verification of the information provided by the
shortlisted applicants in the submissions for
prequalification may be made. In case the
information is found to be wrong or incorrect in
any material way or the applicant is found to be
lacking in the capability or resources to
successfully perform the contract, the
application shall not be prequalified.

34.  (e) procuring agency shall promptly notify each
and every applicant,whether or not it has been
pre-qualified; and also make available to any
person directly involved in the pre-qualification
process, upon request, the names of all
suppliers or contractors who have been pre-
qualified.
 (f) procuring agency shall, on written request
of the applicant(s)communicate to the
applicant(s) the reasons for not pre-qualifying
them, though it shall not be obliged to justify
these reasons.

35.  (g) only suppliers or contractors, who have been pre-qualified
shall be entitled to participate further in the procurement
proceedings.
 (2) The procuring agency, shall mention, in the pre-
qualification documents;
 (a) all information required for pre-qualification, pertaining to
the factors mentioned at Rule 27 (2);
 (b) instructions for preparation and submission of the pre-
qualification documents;
 (c) evaluation criteria;
 (d) list of documentary evidence required from the applicants
to
 demonstrate their respective qualifications;
 (f) any other information that the procuring agency deems
necessary for pre-qualification.

36. DISQUALIFICATION OF SUPPLIERS,
CONTRACTORS AND CONSULTANTS
 (1) The procuring agency shall disqualify a supplier,
consultant or contractor, whether already pre-
qualified or not, if it finds at any time, that the
information submitted by him concerning his
qualification and professional, technical, financial,
legal or managerial competence as supplier,
consultant or contractor, was false and materially
inaccurate or incomplete; or
 (2) At any stage has indulged in corrupt and
fraudulent practices, as defined in these rules;
 (3) A supplier, contractor or consultant being
aggrieved by the decision of the procuring agency
regarding disqualification may seek relief through the
mechanism of grievance redressal, as provided under

37.  (c) final decision by a court or tribunal of
competent jurisdiction that the contractor or
supplier is guilty of tax evasion;
 (d) wilful failure to perform in accordance
with the terms of one or more than one
contract;
 (e) failure to remedy underperforming
contracts, as identified by the procuring
agency, where underperforming is due to the
fault of the contractor, supplier or consultant;

38. BLACKLISTING OF SUPPLIERS, CONTRACTORS
AND CONSULTANTS
 (1) The following shall result in blacklisting of
suppliers, contractors, or consultants,
individually or collectively as part of
consortium.
 (a) conviction for fraud, corruption, criminal
misappropriation, theft, forgery, bribery or any
other criminal offence;
 (b) involvement in corrupt and fraudulent
practices while obtaining or attempting to
obtain a procurement contract;

39.  (2) Procuring agency may, on its own motion,
or information provided by any party, carry
out an investigation to determine, whether
there is sufficient cause for blacklisting a
contractor, consultant or supplier. If the
procuring agency is satisfied that such a
cause exists, it shall initiate the process of
blacklisting in accordance with the procedure
laid down in regulations to be issued by the
Authority;

40.  (3) As a result of the scrutiny process, as
mentioned above in sub-rule
 (2), the procuring agency may take one of the
following decisions; (a) contractor or consultant
or supplier may be blacklisted;(b) contractor or
consultant or supplier may be debarred
temporarily,specifying the time period;
 (c) contractor or consultant or supplier may be
blacklisted if he fails to take the specified
remedial actions within a specified time period;
Provided that the procuring agency shall duly
publicize and communicate its decision to the
Authority, other Government departments, and
also hoist on its own website.

41.  (4) Any party being aggrieved by the decision
of the procuring agency may submit an
appeal to the Authority, which shall refer the
matter to the review panel, as provided in
Rule 31, sub-rule (8) to (15);
 (5) Chief Secretary on the basis of
recommendations furnished by the review
panel, may confirm, overrule or modify any
decision taken by the procuring agency;

42. RISK PURCHASE,

Time and date of delivery is the essence of a contract.
 Beyond delay or failure in delivery schedule by certain
time frame, Purchaser reserve their right to purchase the
contracted material from third party of their option and
claiming the excess cost incurred there of under risk
purchase to contractors account as well as recover
damages as stipulated in addition to those for breach of
contract.
 Risk purchase conditions can also be applied in the
event goods supplied are not in accordance with
specifications of contract and not replaced within
reasonable time frame of warranty conditions being
invoked.

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