Bid evaluation and notification
The Invitation to Tender (ITT) closes in mid-December. Pharmac then begins the evaluation of tender bids.
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In mid- to late- January, we contact suppliers if we need product samples to evaluate their Tender Bid. In mid-February, our Tender Clinical Advisory Committee (made up of expert practising health professionals) reviews the samples and gives Pharmac advice on them.
Bid evaluation begins in earnest
Pharmac’s Tender Evaluation Committee (made up of Pharmac staff) reviews all tender bids and makes recommendations on each Tender item. Some of these recommendations may be provisional. For example, if the product needs Medsafe approval or we need more information.
Pharmac staff evaluate bids using our Factors for Consideration. These help us make sure we’re securing the best health outcomes for New Zealanders, within our fixed budget.
Recommendations to the Board
Pharmac staff then make final recommendations to the Pharmac Board (or its delegate). We usually start notifying our Tender decisions in February.
Pharmac does not make all its tender decisions at the same time. The evaluation process can take time. For some items, it can take several months.
Suppliers may not hear from Pharmac between the Tender deadline date in mid-December and when we make a decision.
Suppliers do have the option to withdraw their bids after a set date. This is stated in the ITT agreement.
What happens after the principal supply period?
The principal supply period lasts until the date defined in the ITT agreement, usually about 3 years. After this, the supplier must continue to supply the market, generally until the ITT agreement is superseded. Typically, this isn’t until Pharmac makes a new tender decision.
Suppliers can find more information about their obligations after end date in the ITT.