CPAG Commercial Evaluation Tool

Tender description

NHS England Specialised Commissioning seeks bids for the development of a commercial tool to allow suppliers of drugs or medical devices underlying the policy propositions to improve the unit acquisition cost which will drive down the net budget impact per patient across five years. This is the cost indicator used to set the location of the policy proposition on the cost-benefit grid. NHS England is keen to incentivise suppliers to offer better prices for their products in a way which simulates negotiations in a multi-bidder environment and yet keeping the confidentiality of other offers. The design of the tool will be based on a tested application of economic theories and proven success in similar commercial projects, ideally in the Healthcare and Pharma industries. Using reverse auction expertise, the commercial tool will drive competitive tension in an environment where it does not exist given that there are different products competing for a given budget (rather than a classic tender where suppliers compete for the supply of a single product). There are three key requirements: 1. the design and development of a reverse auction tool; and 2. implementing the tool and managing the reverse auction in the next round in May 2018; and 3. delivering the commercial tool to be used in the future without any further support. The reverse auction tool should have a digital interface driven by software.