2019/20 invitation to tender (suppliers)

PHARMAC welcomes all feedback on the draft 2019/20 Tender. Feedback received by the deadline may be considered by the Tender Medical Evaluation Subcommittee of PTAC and would be considered by the PHARMAC Board (or it’s Delegate, where applicable) prior to making a decision on this proposal. 

Feedback should be submitted by the following dates; late feedback may not be considered:

Feedback should be provided by submitting an email or letter to the Tender Analysts:

Feedback we receive is subject to the Official Information Act 1982 (OIA) and we will consider any request to have information withheld in accordance with our obligations under the OIA. Anyone providing feedback, whether on their own account or on behalf of an organisation, and whether in a personal or professional capacity, should be aware that the content of their feedback and their identity may need to be disclosed in response to an OIA request.

We are not able to treat any part of your feedback as confidential unless you specifically request that we do, and then only to the extent permissible under the OIA and other relevant laws and requirements. If you would like us to withhold any commercially sensitive, confidential proprietary, or personal information included in your submission, please clearly state this in your submission and identify the relevant sections of your submission that you would like it withheld.  PHARMAC will give due consideration to any such request.

Details of the proposed 2019/20 Tender

In general, the proposed 2019/20 Tender process would be similar to the 2018/19 Tender. In addition to Alternative Commercial Proposals (discussed below), we seek comments on all sections of the draft 2019/20 Tender, in particular on: 

• The proposed changes in the draft 2019/20 Tender;
• An indication of any pharmaceuticals, whether or not they are included in Schedule Two of the draft 2019/20 Tender, that you consider should be tendered, and the reasons for that view. If you wish, you may provide a non-binding confidential indication of the price or price range that you might be able to offer for a line item or group of line items you wish to have tendered;
• An indication of any pharmaceuticals, whether or not they are included in Schedule Two of the draft 2019/20 Tender, that you consider would be inappropriate to tender, and the reasons for that view, including any contractual constraints or patent protection that could restrict PHARMAC from awarding a tender on a particular pharmaceutical;
• For Hospital Pharmaceuticals, feedback on the appropriate Discretionary Variance Limit for each pharmaceutical, in the event that a 1% Discretionary Variance Limit is not considered clinically acceptable; and
• Feedback on any unresolved Tender Bid(s) from previous tenders that you consider should remain open for acceptance. Please note that some currently unresolved Tender Bids may be resolved prior to the consultation deadline and the final 2019/20 Tender being issued.

Draft Invitation to Tender

We are seeking feedback on the composition of the draft 2019/20 Tender. This is still under development and may change before it is taken to the Board (or its Delegate) for approval and subsequently issued. At this stage, but depending on the extent of any changes, PHARMAC does not intend to send out further drafts for consultation.

A complete copy of the draft 2019/20 Tender, including the proposed terms and conditions which successful tender bids would be subject to, is available on our website (www.pharmac.govt.nz(external link)). The draft 2019/20 Tender comprises the following sections:

Schedule 1:         Definitions and interpretation

Schedule 2:         The list of pharmaceuticals proposed for tender* ^#

Schedule 3:         The Tender process (for both hospital and community tenders bids)

Schedule 4:         Contract terms for Sole Supply and/or Hospital Supply Status

Schedule 5:         Additional contract terms for Sole Supply Status

Schedule 6:         Additional contract terms for Hospital Supply Status

Schedule 7:         Additional special terms for particular pharmaceuticals

_{* The units provided in Schedule Two consist of market data for the year ended 30 June 2019. The figures included are indicative only and are provided on the basis set out in clause 1.3 of Schedule 2 of the draft 2019/20 Tender.}

_{#  The final list of products, which may change following consultation, would be released as part of the 2019/20 Tender, following Board (or its Delegate) approval. You may provide feedback on the inclusion of any additional pharmaceuticals after the 2019/20 Tender has been issued, and any such feedback would be considered by the Board (or its Delegate) before making a final decision on any product, provided that any feedback is given prior to the tender close date in late 2019.}

2018/19 Invitation to Tender

Electronic Tender (eTender) system

The 2019/20 Tender will be distributed via PHARMAC’s electronic tendering portal. The portal requires companies to register for a user account and details of how to register will be distributed prior to the release of the final 2019/20 Invitation to Tender. Please let us know if the contact details for the person responsible for submitting tender bids have changed for your company by sending an email to the tender analysts at tender@pharmac.govt.nz by 5pm, 27 September 2019. 

Alternative Commercial Proposals

PHARMAC seeks any Alternative Commercial Proposals (ACPs) to tendering that you may wish to submit. An ACP may, for example, offer price reductions on one set of pharmaceuticals in return for PHARMAC agreeing to defer tendering on another group of pharmaceuticals for a period.

Please note the following points apply to ACPs for both the community and DHB hospital markets:

• ACPs may include more than one line item and may include pharmaceuticals not listed in Schedule Two of the draft 2019/20 Tender;
• ACPs may seek PHARMAC’s agreement to defer tendering or application of reference pricing for a period of time for any pharmaceutical, whether or not it is listed in Schedule Two of the draft 2019/20 Tender;
• ACPs may not propose awarding Sole Supply Status in the community or Hospital Supply Status in DHB Hospitals;
• PHARMAC reserves the right:
  • not to accept any ACPs; and/or
  • not to provide reasons for the acceptance or non-acceptance of any ACP; and/or
  • to enter into an agreement or arrangement that differs in a material respect from that envisaged in this letter.

ACPs are due by 5pm, Monday 26 August 2019. PHARMAC may not consider any ACPs that are submitted after this date.

Usage data for ‘PCT only’ injectable products

The table below contains ‘PCT only’ usage data for items included in the 2019/20 Tender. These volumes are approximate and indicative only. PHARMAC makes no representation as to the accuracy of these figures or as to the level of sales or likely sales of any tender item.