Reminder to colleagues: Tender waiver
October 31, 2023
A reminder to everyone that the approved process for the Trust when purchasing goods and/or services, is to seek quotations from two or more suppliers, regardless of the value of the purchase. Competition is a key component of driving the best value. Without competition, it is impossible for the Trust to establish whether it is getting the best product or service. It is also extremely difficult to judge value for money.
Suppliers will often offer percentage reductions, special deals, one-off incentives (e.g. free equipment) or time-limited discounts, all of which are designed to make staff commit to quick purchases without comparing the offer against alternatives. Whilst in some instances it is possible that such special offers represent the best deal for the Trust, it is often not the case. It is always preferable to check with Procurement Team prior to committing to a purchase that is not on a catalogue.
When is a tender waiver necessary?
A tender waiver form is required when:
- you are proposing to spend £10K+; and
- you have not obtained any alternative quotes.
Tender Waivers will only be accepted in exceptional circumstances, such as when only one supplier is available or to buy elsewhere would result in disproportionate technical difficulties. All of the justifications are listed on the Trusts standard Tender Waiver Form.
Why must I raise a tender waiver?
A tender waiver should be a method of last resort. In most instances, it is preferable to tender or to ask for additional quotations. The Trust’s standing financial instructions (SFIs) encourage competition wherever possible. The SFIs are designed to ensure that we achieve probity, accuracy, economy, efficiency and effectiveness. Put simply, if we don’t follow the SFIs, we can’t guarantee we are delivering value for money.
Guidance
1. Plan your expenditure and your procurement route to ensure the best value for public money
2. Do not enter into last-minute contractual arrangements that mean we cannot ensure value for money
3. Raise requisitions and purchase orders well in advance of incurring the cost
4. Involve the procurement team as early as possible
All tender waivers should be forwarded for approval to your procurement business partner or category manager. If in doubt, send your waiver directly to mike.hanson@nhs.net.