Overview
During the COVID-19 pandemic and resulting economic recession, high demand for personal protective equipment (PPE) created a severe shortage. PPE prices increased sharply, and medical providers were forced to compete for limited supplies. To better prepare for the next disaster and potential supply chain disruptions, the PPE Consortium has been formed. The workgroup is exploring ways to strengthen Southern California’s PPE pipeline, including investing in the region’s ability to produce supplies.
Although PPE stocks have greatly improved, it’s vital for the region to prevent such shortages in the future. The consortium’s ultimate goal is to bring local PPE manufacturing to Southern California. After evaluating numerous manufacturers, the group has chosen a vendor to provide quality, competitively priced PPE supplies in the area for routine use, surge capacity and stockpiling reserve.
To achieve this goal, the group is calling on health care leaders to commit to purchasing a portion of their normal PPE inventory through the collaborative. By making this investment, health care providers can help ensure the region will be prepared for the next crisis.
How to Participate
Organizations can join the program in two ways:
Letter of Agreement (LOA)
- Short-term solution that enables buyers to purchase now
- Can purchase directly from supplier or coordinate procurement through preferred distribution channel
- Direct purchasing will ensure lowest price available and include delivery of all orders
- Purchases through distribution may incur added service charges to be negotiated between hospital and distributor
- Agreement template available for buyers to use and execute terms with supplier
- Consortium experts available to help facilitate agreement
Master Purchasing Agreement (MPA)
- Long-term solution led by consortium and supplier
- Through MPA, hospitals/buyers sign up and begin purchasing PPE at competitively priced, fixed, negotiated rate
- Can purchase directly from supplier or coordinate procurement through preferred distribution channel
- Direct purchasing will ensure lowest price available and include delivery of all orders
- Purchases through distribution may incur added service charges to be negotiated between hospital and distributor
- Consortium team will manage contract annually
All purchases through either the LOA or MPA will contribute to meeting the overall volumes required to initiate a Southern California manufacturing plant. The consortium will track total purchases and report them to participants annually.
The PPE manufacturer plans to start local production once volume reaches a sustainable level. The vendor will begin converting high-demand PPE in Southern California when annual revenue from PPE Consortium purchases reaches a minimum of $25 million for three consecutive years, or $75 million in one year. As part of converting operations, extrusion operations will begin when annual consortium purchases reach $50 million minimum for two consecutive years, or $100 million in one year.
All PPE products are approved by the U.S. Food and Drug Administration, rated by ASTM International and widely available to the health care industry.
Next Steps
Health care entities can join the PPE Consortium by contacting the supplier to accept PPE samples and place orders through a LOA. Once the MPA has been approved, organizations can sign up and continue purchasing part of their inventory through the program.
For more information, please see these documents:
- New customer application
- Letter of agreement (includes PPE product catalog and pricing)
- Instructions for completing LOA and placing orders
Contact
For any questions about the PPE Consortium, please email [email protected].