Table 7.

Recommendations for good tender practice

Recommendation		Why
Tender preparation
Tender is part of an integrated strategy	Take a comprehensive approach to controlling cost and volume. Use a mix of policies aimed at the same objectives (e.g., reimbursement policies, prescription control policies, substitution policies, claw back, pay backs, rebates, and managed risk agreements)	A wholistic approach eliminates loopholes that may counter the goals of cost-control policies such as shifting prescriptions to non-tendered products
Legal framework	National legislation and regulations provide the necessary legal foundation for procurement procedures, contract enforcement, financial authority, staff accountability, and other critical aspects of procurement of pharmaceuticals	Relevant legal and financial authorities recognize and apply the special requirements for pharmaceutical procurement
Capacity building	Prudent tender practices require well-trained and capable personnel. Capabilities may be built through national or international qualification programs, apprenticeships, or exchange programs with leading supply agencies in other countries, or through support from experienced external technical advisers	Better educated personnel will help to avoid simplistic and badly organized tender practices as well as reduce ambiguousness and the risk for corruption
Reasonable tender size	Pooling of purchasing needs across organizations and over the time horizon to achieve higher tender volumes	Larger procurement volumes increase suppliers’ interest in bidding and thus, competition
Reasonable time horizon	The tender duration should be at least 1 years	Stability of supply processes, improved stock management, consistent therapy
Tender conduct, evaluation and contract award
Clear specifications and quality standards	Pre-qualification: the supplier capacity, manufacturing standard, and reputation are evaluated before bids are solicited for specific products. Post-qualification: verify the adherence of manufacturer and products to the bid specifications	Pre- and post-qualification procedures help to eliminate substandard suppliers and confirm that the goods are received as defined in the specifications
Total cost	Consider total cost rather than price only. There may be hidden cost (consumables, side effects, monitoring, distribution)	Fair comparison of the total expenditure related to each offer
Multiple winners	Award contracts to the two to three best scoring suppliers	Avoid shortages and monopolies
Tender follow-up
Purchasing and inventory control	Continuous inventory control processes are established and will tightly manage the stock and restocking	Ensures that products are available in the right amounts at all points of usage throughout the entire contract duration
Monitoring	Tenders should be monitored for performance vs. all requirements and non-compliance should be penalized	Increased supplier responsibility, learning for future tenders