NHS Supply Chain has informed the NHS Business Service Authority that they place considerable emphasis on National Institute For Health And Clinical Excellence (NICE) guidelines when evaluating the non-financial aspect of quality in a tender evaluation to ensure that the products they offer are in line with NICE guidance.
NHS supply chain does not operate a preferred suppliers list but will manage the procurement and delivery of in scope products through a formal contracting process in-line with the European Union directives. Procurements undertaken prior to the establishment of NHS supply chain were also governed by the EU directives and contracted in the same way.
Transparency is brought to this process by publication of a procurement calendar identifying all opportunities that are available and open to supplier bids. New opportunities will be added on a regular basis. This calendar is available on the NHS supply chain website at
www.supplychain.nhs.uk.
NHS supply chain actively monitors the progress of new and innovative products and will work with small suppliers to ensure innovative products can be delivered at the best possible price.
The tender process which national health service supply chain use to select which suppliers should be awarded contracts is shown in the table.
Contracting process – steps Key activities 1. Identify customer needs A. Product assessment Customer input/clinical preference determination Third-party information Manufacturer input Knowledge of product management New products/innovative technology B. Market assessment Validate business opportunity Competitive analysis Supplier assessment meetings Capabilities, technology, breadth of line, value beyond price, strategic direction C. Customer market research Quantitative survey (valid sample) Key decision-makers Preferences/acceptability Consider procurement rivers and timescales Price/usage Supplier comparison Input on tender specifications D. Choose the most appropriate procurement procedure Consider procurement rivers and timescales 2. Tender development Finalise decision criteria award matrix Follow formal procedures of the tendering process Define product line Determine final product and performance specifications Send to all eligible tenderers 3. Tender analysis Determine total delivered cost and quality available Compare among tender respondents 4. Issue resolution/clarification Clarify terms and conditions to tender responses Discuss enhancements Focus on value for money Develop implementation plan Finalise supplier agreement 5. Decision making Determine low best tender based on decision criteria award matrix Consider needs, market assessment and market research Involve councils, task forces and customers as necessary Make award recommendation pending issue resolution Notify all tenderers of decision 6. Finalising the award Finalise supplier agreement Prepare executive summary package Draft contract summary Begin contract approval process 7. Launching the agreement Notify all tenderers of decision Inform customers of decision Develop customer-focused marketing and communications plan in collaboration with supplier Complete and distribute contract summary to customers and logistics Perform sales training and targeting 8. Records retention Provide legal department with original signed copy of agreement
Standard prices for products are set based on the product cost and a margin applied to these products to cover the operating costs of NHS supply chain. There are restrictions as to how margin can be applied and also restrictions to increases in sell price changes.