You are the Director of a State Drug Procurement Corporation. A shortage of paediatric anti-cancer chemotherapy drugs has reduced supply to 60 per cent of demand for the next three months. A foreign-pharma representative offers a ‘compassionate’ free supply for one quarter — on condition that you place a confidential MoU signalling future preferred-supplier status. The State Public Health Director, two paediatric oncologists and a parent-advocacy group are split. The drug-controller has cleared the imported batch. The Cabinet meets in 10 days to discuss budget reallocation. What course of action would you take? Justify with the values involved.
Subtopic: Section B · Case Study · Conflict of interest — pharma compassion offer
How to structure your answer
1. Dilemma: immediate paediatric lives vs procurement integrity and future-market distortion.
2. Stakeholders: child patients and families, oncologists, pharma firm, future suppliers, Public Health Director, Cabinet, CAG.
3. Options: (a) accept the MoU silently — children get drugs, future tender compromised; (b) refuse the offer entirely — principled but children suffer; (c) accept the free batch under a transparent emergency-purchase protocol with no preferred-supplier clause, and parallel-track emergency tender + Cabinet ratification — hard right.
4. Decision: Option (c) — accept via GFR Rule 170 emergency provision with no future commitment; convene an emergency procurement committee; brief CAG in advance.
5. Safeguard: publish offer letter and MoU draft on portal; involve drug-controller for QC; file note recording reasons; future-tender insulated by a written declaration of non-preference.
Written within the word limit
227 words · target 250 words · 14 min
Dilemma: Immediate paediatric lives over the next 90 days versus procurement integrity, future market competition and the risk of a confidential preferred-supplier clause silently distorting tenders for years.
Stakeholders: Child cancer patients and parents (right to life under Article 21); paediatric oncologists (clinical duty); the foreign pharma firm (commercial interest); other current and future suppliers (level playing field); Public Health Director and Cabinet (policy ownership); CAG and the State Vigilance Commission (audit and integrity); future Director-PSU governance.
Options: (a) accept the MoU with the confidential preferred-supplier clause — children get drugs, future tender compromised, PCA 1988 Section 7 risk; (b) refuse the offer entirely — principled but children suffer avoidable harm, fails the duty of care; (c) accept the free batch under GFR 2017 Rule 170 emergency-procurement, with the preferred-supplier clause explicitly struck out, in parallel with an emergency tender, and Cabinet ratification within 10 days — the hard right.
Decision: Option (c). Reasons — Article 21 right to life of the child (compassion); Kant's universalisability test, since any supplier offering free emergency stock on identical terms would receive the same treatment (integrity); and the Nolan principle of openness through pre-emptive CAG briefing and publication of the draft MoU (transparency).
Safeguard: File-note recording the offer and rejection of the preferred-supplier clause; publish the MoU and tender on the portal under RTI Section 4; drug-controller QC certificate; written declaration of non-preference for the upcoming tender; report to the State Vigilance Commission.
What an examiner expects to see
- GFR 2017 Rule 170 — emergency-purchase provision
- DoPT Conflict of Interest Guidelines 2014
- Bardhan principle of beneficial-but-bounded gifts (PCA 1988 Sec 7)
- Kant's universalisability test — would all suppliers be allowed the same?
- Right to life of the child (Article 21) — immediate weight
- Future-tender capture — long-term harm to market competition
Concrete cases, schemes and judgments
- Bihar paediatric AES drug shortages 2014
- AIIMS chemotherapy drug shortages 2023
- PMBJP Jan Aushadhi Kendra coverage expansion 2024